Collingwood now out of property lending

Press, 18 July 1979, Page 23

Collingwood now out of property lending

PA Auckland The finance division of Collingwood Holdings, Ltd (formerly Allied Group, Ltd) has completed its withdrawal from property lending, the chairman (Mr K. M. Griffiths) says in the report for the five months to March 31. This had reduced outstandings, but it also allowed repayment of part of overseas borrowings ahead of time. Prospects remained good for consumer, and motor vehicle finance, the report says. As announced, the restructered company earned $109,518 in the five months, representing 18.6 per cent per annum on ordinary shareholders’ funds, and 20 per cent on capital, after tax of $62,371. The dividend of 5 per cent (2.5 c a share) requires $50,000, and the preference dividend required $26,000. Auckland Motors, a subsidiary, experienced buoyant trading. The dealership at Manurewa was sold, but a branch was opened on North Shore.

Increasing costs had made directors decide not to expand Johnston’s Blue Motors, transport operator, at present. Construction is well-ad-vanced on the property division’s large Henderson office building. This building had been let and sold, but the division will manage it. A factory in the Greenfields, Auckland, subdivision will be completed this year, and it was expected that the Bay of Islands subdivision would be ready for marketing in the current year. No other developments were planned for this year. Prospects for selling land had improved in recent months, the report says. The balance sheet showed shareholders’ funds at $1,577,829, including capital of $1,000,000 ordinary, and $500,000 convertible preference. Borrowings were $3,825,472 in addition to overdraft of $808,022. Receivables were $2,247,431, stocks and work in progress $1,824,242, and property developments $1,437,435.