DYOLL GROUP earned $164 million in net profit last year, driven mainly by income from interest, dividends and foreign exchange gains. Gross operating revenue was $1,376 million for 2003. This was a 55 per cent improvement over the $889 million in 2002 revenues. But high costs weighed in more heavily than the revenues. The company made a $30 million loss on its core operations, for its financial year ended December 31, 2003. This was a smaller loss than the $34 million lost in operations for 2002.
"A significant amount of the income came from exchange gain and investment income," said Mark Walters, vice president for Treasury and asset management at Dehring Bunting & Golding. This was responsible for the 40 per cent increase in net profit.
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Of the $164 million in 2003 net profit, income from interest and dividends amounted to $130 million. Foreign exchange gains stood at $88 million. "But with the likelihood of a stable exchange rate this year and a fall in interest rates," Mr. Walters said, "the company will have to get more profitable in its core business in what has become a more competitive general insurance market."
A Mayberry Investments analyst said, "With market as it is now you might see some gains from the sale of investments." He said Dyoll had, "a pretty diverse stock portfolio."
Mr. Walters said Dyoll might also benefit from its recent link with National Commercial Bank, due to its acquisition of a substantial tranche of Dyoll shares.
"There may be opportunities for synergies between Dyoll and NCB if they decide to sell Dyoll services through the NCB network," Mr. Walters said.
The Mayberry analyst said the more likely prospect was that NCB "will be putting some business to the company." Mayberry has the stock on its 'buy' list, the analyst said. "We have been advocating it for some time."
The Financial Gleaner was unable to get a comment from Dyoll on its results.
