HOLEPROOF INTEREST

Press, Volume CV, Issue 31061, 17 May 1966, Page 21

HOLEPROOF INTEREST

Failure Of Scheme (N.Z. Press Assn.—Copyright) SYDNEY, May 16. While eliminating hopes of a sudden cash return to Factors shareholders, the failure of the board’s scheme to float off the company’s New Zealand subsidiary will at least ensure that shareholders’ funds will remain in a profitmaking venture, the “Financial Review” reported today. The New Zealand company —Holeproof Industries, Ltd.— earned close to £240,000 in the last financial year, and if the float valuation is any indication, an even better result could be expected from the company in the current year. Announcing the failure of the deal on Friday, directors of Factors said the minimum selling price agreed to in discussions had been £2,232,000. Investigation They claimed the prospective underwriters for the float had advised them that independent calculations and an investigating accountant’s report has fully supported this figure. High as the valuation and the profitability of the New Zealand company may be, however, its worth to Factors shareholders is strictly limited by the vast capitalisation of their company, the Review said. Even if the £2.2m figure were realised for the Holeproof investment, it would still return an equivalent of little more than 35c for each 50c Factors share. The share market’s realisation of this fact, coupled with the depressed state of the market generally and the effects of Mr Murphy’s report, have led to a fall in the price of Factors scrip.

Pound Loses More Ground More ground was lost by the pound on the foreign exchange market last week. There was hardening by the United States and Canadian dollars and the currenices of France, Japan, Netherlands, Austria, Sweden, and Western Germany. However, the pound firmed against Belgian and Swiss francs, Italian lire and Danish crown. Changes in the exchange rates advised yesterday by the Bank of New South Wales: N.Z. on.— New York: Buy, 2.7878 dollars (against 2.7886 last week); sell, 2.7563 dollars (2.7571 last week) Austria: 72.45 schillings (72.46); 70.90 schillings (70.91). Belgium; 139.70 francs (139.60); 136.60 francs (same). Canada: 3.0017 dollars (3.0032); 2.9634 dollars (2.9648). Denmark: 19.39 crowns (19.38); 18.98 crowns (18.97). France: 13.74 francs (13.75); 13.45 francs (same). Italy: 1751 lire (same); 171/ lire (1713). Japan: 1015 yen (1016); 993 yen <994). Netherlands: 10.18 guilders (10.19); 9.96 guilders (9.97). Sweden: 14.44 crowns (14.48); 14.13 crowns (14.17). Switzerland: 12.11 francs (12.10); 11.85 francs (11.84). Western Germany: 11.27 marks (same); 11.02 marks (11.03).