Mainzeal down 35 p.c.

Press, 27 March 1980, Page 25

Mainzeal down 35 p.c.

PA Auckland < Mainzeal Corporation, Ltd, is moving to counter the downturn in the construction industry, which resulted in a 35.3 per cent drop in profit for the six months to December 31 for the company, by broadening its activities, and strengthening its management and marketing. The company is also seeking to raise nearly $350,000 with an issue of 15 per cent specified preference, shares on a one-for-three basis. The directors have reported a $124,927 lower net profit of $353,918 for the six months, a result which they! say is reasonably satisfying] in view of difficult conditions I in the construction industry.! Although the company has a substantial work load, jobs are being very competitively priced, and it expects this to

continue for at least another year. However, by mid-1981, there is expected to be as much development and construction work offering as the severely depleted construction industry will be able to handle. To help over the interim period the company has acquired for cash the specialist piling company of Gilberd Hadfield Pile Co, Ltd, and expanded its development and marketing team in the de-sign-and-build area. It will take time for these moves to make significant i contributions to profit, which makes it unlikely that last (year’s record profit level will 'be reached in the current year. However, the directors are confident about long-term prospects. They say that the company has the ability to adapt to changing markets, and benefit from the new opportunities which will accompany the major capital works being planned in New Zealand. At the end of December the company had uncompleted work in hand of $31.9M, compared with $41.9M previously. Since then, new contracts worth SIOM have been gained, and further work is in prospect. The profit does not include any dividend from associates, compared with $lOO,OOO in the previous first half-year. The interim dividend is steady, at 7 per cent payable on April 18. The proceeds of the renouncable preference issue will be used for working-cap-ital, and expanding activities, including those of Gilberd Hadfield. The conversion terms of the specified preference shares will be two ordinary shares for every three preferences held on May 31, 1985. The issue will be made to shareholders registered on April 10. J