Marac plans cash issue

Press, 5 December 1979, Page 28

Marac plans cash issue

It is likely that Marac Holdings. Ltd, will make a cash issue to shareholders early m the new year, says the chairman (Mr j. C. Fletcher). In his full report to shareholders for the six months to September 30 “The directors are giving consideration to an increase of the group capital to ensure there is the necessary base to support planned operations in the next financial year,” he says. Mr Fletcher says Marac has enjoyed strong growth, but that some of this is illusory if the effect of inflation is not considered. As previously reported, the group increased net profit 27.0 per cent to $1,729,999, after tax of $1,098,000, in the six months. Total assets employed in

the group increased 24.3 per cent to $307,951. “Marac was able to increase its funds base in all areas of operation. An increased market share in the finance house sector resulted in debenture stock and unsecured deposits of Marac Holdings, Ltd, as at September 30 being $145.1M, an increase of $30.5M since • March 31.” Mr Fletcher says. He is critical of the Government moves to reduce the availability of funds in the private sector bv competing for deposits. He says that the required level of Government stock holdings, at 22.5 per cent of defined borrowings, means that Marac must hold about S2SM of Government stock. Because of Government moves the flow of funds has

reduced noticeably over the last few months. “Interest i rates have continued to increase as a result of active .competition for funds,” says Mr Fletcher. The three banking companies in the group, Marac Corporation, Marac Australia. and Marac Hong Kong increased their aggregate contribution to group profit. Assets employed in merchant banking in the group inow exceed SIOOM. The union of the Metropolitan and Equitable permanent building societies was completed, and the new unified society is now operating under the Equitable name. Both Marac Life Assurance, and Marac Fire and General Insurance showed premium levels ahead of last year.