Another Loss For Sth. Motels

Press, Volume CIX, Issue 32304, 23 May 1970, Page 16

Another Loss For Sth. Motels

(New Zealand Press Association)

DUNEDIN, May 22.

The six-monthly results of Southern Motels (N.Z.), Ltd, have not affected the decision of the directors of the company to offer their shares to Dominion Breweries, Ltd.

“We are satisfied that our previous decision is correct,” said the directors. Messrs K. R. Greehslade (chairman), C. E. Lloyd, and R. S. Massetti, in a statement sent to shareholders last night.

The results for the six months to March 31 show a reduction in the loss on the same period in 1969. The latest six-monthly loss was $3400 compared with a loss of $10,104 for the six months to March 31 last year. "While the board is pleased with the progress, another loss has been sustained where the board had budgeted for a profit of $857. “It must be noted, how-

ever, that the period under review is the best trading period for the company in each year, and no doubt a loss will be incurred in the next six months. “Your directors would, however, expect that the loss for the year to September 30, 1970, would be less than that

recorded for the previous year. “The consequences of not offering your shares to Dominion Breweries is that if Dominion Breweries do not accept the shares offered then the board will immediately apply to shareholders for finance (the amount being in direct relation to the number of shares held) for bar facilities.” Payment would be required within a short period. If shareholders did not support the company with finance the public bar licence would lapse—that is, the hotel would continue in the same manner as at present, the statement said. “Shareholders must also be aware of the escalation in costs generally, which are affecting our national economy, and it does seem as if it would be extremely difficult to recover these in full. The full Impact of this escalation has yet to be felt, but it does underline the directors’ reasons for their decision.” The statement from the directors shows that turnover for the six months was $98,470, compared with $78,007 for the same period in 1969.