Forest Products’ Premium Issue

Press, Volume CIII, Issue 30442, 16 May 1964, Page 16

Forest Products’ Premium Issue

(New Zealand Press Association) WELLINGTON, May 15. New Zealand Forest Products, Ltd., earned a record profit in the year to March 31 and will make a premium share issue after splitting the £1 shares to 10s units.

The chairman (Mr W. L. Wyber) in a preliminary report announced today that subject to audit, group profit for the year ending March 31 was a record £1,652,000, after provision for tax. This compares with £1,470,114 earned the previous year. Profit was reached after setting aside £1,502,000 for depreciation compared with £1,422,000 in the previous year and providing £1,243,000 for tax compared with £1,139,000 last year. Dividend 8 p.c. Directors recommend an ordinary dividend of 8 per cent on capital increased by the l-for-8 bonus issue made last year, while preference dividend remains at 5| per cent. Directors will recommend to the annual general meeting that the £1 shares in both preference and ordinary capital be subdivided into 10s shares and also the nominal capital be increased from the present £15,000,000 to £25,000,000 by the creation of 10,000,000 new ordinary shares of 10s each. In addition, directors will seek shareholders’ approval to a cash issue of ordinary shares to existing shareholders in the proportion of 1 for 8. This involves the issue of 2,360,878 ordinary shares at a premium of 7s 6d a 10s share. New shares rank for dividend for April 1, 1965. The purpose of the new issue is to provide for expansion of existing and establishment of new plants to meet the growing demand for the company’s products and give

the company elasticity to raise further debenture capital in due course. Mr Wyber stated the directors are confident that the current dividend rate of 8 per cent on ordinary shares will continue and that it should be regarded as the minimum rate in the immediate future.

Should proposals regarding the new issue «be approved, paid up ordinary capital will become £10,623,949 and paid up preference capital will remain at the present £2,781,631.