New $500,000 deb. issue by S.C.M.

Press, Volume CXVI, Issue 34127, 13 April 1976, Page 26

New $500,000 deb. issue by S.C.M.

Smiths City Market Finance, Ltd, is seeking $500,000 with a further issue of registered first debenture stock, with the right to accept oversubscriptions of a further $250,000. The parent company, Smiths City Market, Ltd, has joined the trust deed as unconditional guarantor of payment of interest and repayment of the debenture stock. The Perpetual Trustees, Estate and Agency Company, Ltd, is trustee for the debenture holders. The rates of interest are: call, 6 per cent; ’hree m nths 7 per cent; six months 8 per cent; nine months 9 per cent; one year 10 per cent; two years 11 per cent; three to six vears 12 per cent. The auditor’s report included in the prospectus shows that the asset backing of each $lOO of debenture stock — after the current issue is filed — is calculated to be $163. At the last balance date, April 30 last year, the finance company had in debenture stock and deposit accounts $139,145 maturing within 12 months, and $771,355 maturing beyond 12 months. The organising brokers, Sturge Wilson and Company, and the company have reserved firm $200,000 of the issue.

Rickstan improves The 'current retail and manufacturing trading of Rickstan Holdings, Ltd. has shown a marked improvement in comparison with the first six months of the financial year to September 30, the directors say in an interim report. Cost controls had reduced overheads to a closer relation with current trading. Export production had continued at a high level over the previous six months, and liouidity had improved over this period. However, increased working capital would require further finance, they say.