John Burns 3:4 bonus

Press, 24 September 1980, Page 22

John Burns 3:4 bonus

John Bums and Company, Ltd, will make a bonus issue of three new shares for every four shares held, after a record profit in the year ended June 30. The audited group net profit was $804,474, a recovery from the 1979’ loss of $4117, the directors >said in a preliminary report. : The 1980 figures include equity profits of $59,138 (1979: $46,510). In addition, extraordinary profits from realised property sales total--1 e d $1,281,804 (1979:

$857,781) giving total profits for the year of $2,086,278 (1979: $853,664). Because of past losses no taxation is payable and father tax savings of $1,055,523 are available to be set off against tax on future profits. Sales for the year were $25.0 million but are not comparable to 1979 sales of $32.1 million because of operations' closed down. The directors are recommending a final dividend of 7.5 c an ordinary share which, with the interim divi-

dend paid in May, makes a total distribution for the year of 12.5 c for each 50c share (25 per cent). Ordinary shareholders received a total of 100 c a share in June, 1979, and March, 1980. The Scheme of Arrangement approved in 1979 envisaged an additional special payment of 75c for each ordinary shareholder in December.

“Considerably changed economic circumstances and new investment prospects which were not envisaged at the time of the original Scheme have resulted in the directors now recommending to the annual general meeting a bonus issue of three new ordinary shares for each four shares held, to replace the 75c payment. “The directors consider the new proposal, as well as being logically sound, very much in the interests of shareholders, as it will strengthen the capital base of the company to take advantage of opportunities such as the merger proposal being announced separately,” they say. “It is expected that future dividends on ordinary shares after the bonus should be maintained at 15 per cent, and realised capital profits, at about $1.4 million, will enable payment of future tax-free dividends. Shareholders will also be asked at the general meeting to approve an increase in nominal capital to $7.5 million.

Details of the most up-to-date pharmaceutical manufacturing complex to be built in New Zealand were announced by Pfizer Laboratories, Ltd, the New Zealand subsidiary of Pfizer Inc:, the international, re-search-based pharmaceutical nfanufacturer.

The new- plant, which is to be located at Wiri, in South Auckland, represents an investment of $5 million in land, buildings and manufacturing equipment. Other buildings on the 2.7 hectare (6.6 acre) site include an office and administration building and a cafeteria. Construction of the new complex, which will be built by Fletcher Development and Construction,- Ltd, is scheduled for completion in July of next year. Manufac-

turing will commence by September, 1981.

“The decision to erect a production facility in New Zealand reflects Pfizer’s policy of- encouraging local manufacture and the use of the local resources whenever feasible,”, said Mr Malcolm Eppingstall, managing director of Pfizer Laboratories, Ltd. “By manufacturing here, Pfizer will provide the country with an estimated foreign exchange saving of $5.4 million in the first five years of our operation. We will place local orders for at least $500,000 worth of New Zealand-made equipment for the plant, and will employ a staff of about 70 people at the new manufacturing and office facility.” The manufacturing section of the new complex, repre-

senting the most up-to-date technology, will include blending, packaging and warehousing areas as well as a mezzanine housing a highly sophisticated air purification system necessary for the safe manufacture of ethical pharmaceuticals. The manufacturing floor will consist of separate, sealed areas for the different production processes, thus preventing cross-con-tamination among the blending, granulating, tableting and packaging stages.

Each such area has its own individual air filtration,

air conditioning and humidity control systems. In addition, all walls, the floor and roof surfaces will be constructed of concrete to further ensure the elimination of microbiological and chemical cross contamination.

Doors and windows will be of aluminium, and all surfaces are to be coated in special, hardwearing, chemically resistant epoxy resins. A quality control laboratory will be located within the plant to provide quality assurance in the total process, from material ordering through to final despatch.