Montana directors under pressure

Press, 5 November 1977, Page 19

Montana directors under pressure

PA Auckland The directors of Montana Wines, Ltd, came under pressure to pay a dividend at the company’s annual meeting but the chairman (Mr R. K. Davison) held firm to the board’s policy.

He said that when the board decided against paying a dividend in the year to June 30, 1977, it felt that in the present economy and with an uncertain future, it was prudent this year to consolidate and build up liquidity. Paying a dividend for 1977-78 would be the aim providing there was no grave downturn in the economy, he said. A number of shareholders asked about a dividend during the meeting, but eventually there was loud applause tvhen one said he was celighted at how his

shares were appreciating and would happily wait a further two years for a dividend if that was necessary. Mr Davison said that Montana had completed its restructuring, and progress at the Blenheim, Gisborne, and Tamaki vineyards and bottlins, plants was turning out better than expected.

Sales in the three months to September .30 were substantially ahead of budget. It was difficult to predict just how the next nine months would go but the board was confident there was a demand for the company products which would continue throughout the rest o' the year.

“We expect that, unless there is some grave downturn in the economy, the board's intention to consider paying a dividend will be realised,” he said.

Montana was getting a steady share of the market and expected this to keep advancing. In time, as production rose, it planned to also market its wines overseas.

The board would consider suggestions by several shareholders that the company provide more information in the annual report — one shareholder noted that a board member. Sir Geoffrey Roberts, recently had said in a speech that the directors had a duty to give shareholders more information.

The board would consider issuing an interim report to shareholders, Mr Davison said.

A shareholder who sought an assurance that the company would be able to cover term liabilities repayable within 12 months was told by Mr Davison that this was a question he had expected. He was able to specify how the sum of $3,289,748 would be covered. The company itself would have to provide only about $200,000 and could do this.