Begg’s Loss $418,000

Press, Volume CX, Issue 32392, 3 September 1970, Page 14

Begg’s Loss $418,000

In a very brief statement to the Stock Exchange yesterday, Charles Begg and Company, Ltd, announced an audited group trading loss of $418,000. The directors recommend that the dividend be passed. .They said that shareholders’ funds had been maintained. ; Shareholders were forewarned by the preliminary statement last month that a “substantial” loss had been incurred. However, the actual figure would be larger than most would have expected. The size of the loss demonstrated clearly that the company has not yet been brought to recovery.

Accumulated losses since 1967 would be more than $l.l million. The adverse liquidity position is being alleviated by the sale of assets, as reported earlier, although the company denied at the time that it was engaged in a rescue operation. However, apart from the large accumulated trading losses, more than $1 million of debenture will fall due within the next two years. The 50c shares sold yesterday in Dunedin at a steady price of 40c; on the Christchurch Stock Exchange buyers offered 15c, with sellers asking 40c. No sale was made.