Noahs’ creditors are showing concern

Press, Volume CXIV, Issue 33626, 30 August 1974, Page 12

Noahs’ creditors are showing concern

(N.Z. Press Association—Copyright)

SYDNEY

Noahs, Ltd, Australian motelier which is about half-owned by Mainline Corporation, Ltd, was in a “very tight liquidity situation” and a number of creditors had expressed their concern, the directors have said.

The company was feeling the effects of the psychological impact associated with Mainline’s collapse, and it had subsequently been forced to pay a commercial; bill before it was due to be! rolled-over later this month. I In addition, the programme of property sales had been endangered by Mainline’s] situation, the high interest | rates, and a shortage of finance. A major effort was made

;i during 1973-74 to reduce i -.borrowing, with total debts' I!at June 30 reduced from] $4.4m to $2.9m. Secured ex-; ijternal debts fell from s4.lm; ;to $2.4m, but unsecured ;idebts rose from $291,000 to; '5506,000. Dividend passed ! I The company’s overdraft with the Commercial Banking Company of Sydney,: , Ltd, had been cut from ' 5900,000 to $lOB,OOO. Mainline’s managing director, and one of its founders. Mr R. C. T. Baker, is chairman of Noahs and the chairman of Mainline, Air Vice-Marshal 1. D. McLachlan, is deputv chairman.

The very tight liquidity situation would be corrected as long as trade creditors continued their support and the company was able to realise its proposed property sales within the not too distant future, the directors said.

If these efforts were successful, the directors expected that the cash problems would be solved and the profit budgeted for this year would be achieved. They said that the $950,730 loss in 1972-73 had been reduced to $28,174 loss in the latest year. Cost and wage increases iin 1973-74 had resulted in 'operating profits falling i about $150,000 short of the 'budgeted operating profit.

!i No dividend would be paid this year. The last payment [was for the 1971-72 halfyear. The loss was after extra- ; ordinary net profits of 5204,882 on the sale of pro perty and shares and! $396,540 from amounts: transferred from asset re-’ valuation reserves, representing unrealised capital | profits on the sale of pro- [ perty. No provision was made] for tax. Depreciation and amortisa-; tion provision rose from $166,596 to $174,176. Total revenue rose 49 per] cent to $16.7m.