Rosebahk Daveys on the list

Press, 12 February 1982, Page 7

Rosebahk Daveys on the list

PA Dunedin Rosebank Daveys Industries. Ltd, a Balclutha-based timber and building supplies company, had its shares listed on the New Zealand Stock Exchange today. Already this company has caught the attention of another and in addition to listing, a share exchange with John Edmond Holdings, Ltd, is taking place. This share exchange gives John Edmond, the Dunedinbased building supplies company, 23.9 per cent of Rosebank Daveys’ capital.

The two companies started a joint venture timber company in Dunedin last year and the share exchange is seen as consolidating that relationship. Rosebank is issuing 400,000 ordinary 100 c shares at a premium of 80c (worth $720,000) and John Edmond is issuing about 130.000 100 c shares at a premium of 130 c (worth $299,000).

At the same time Rosebank acquires timber assets of United Trading Co., Gore, an Edmond subsidiary, which it will add to its own timber interests there.

The new listing was formed by the 1975 merger of Daveys Industries and Rosebank Timber, and has an issued capital of $950,691,

spread among 256 shareholders. Sales to Mav 31. 1981, were $5,843,968 (1980: $4,910,161) and tax-paid profit $254,143 ($378,712), with sale of properties in 1981 adding $824,168. of which $725,964 is earmarked for tax-free dividends.

A 15c (13c) tax-free dividend was paid for 1981. Earnings a share were 33c (53c) and asset backing is 417 c. (313 c the current ratio is 1.40 (2.21).

Explaining the earnings reversal, the chairman (Mr M. G. Shepherd) attributes it to greater expenses, though recent acquisition of McGill Concrete, Naseby Timber, and a mill at Ettrick is expected to improve after equipment upgrading. The organising broker, Forsyth Barr and Company, of Dunedin, expects the shares to trade at 200 c at which price the yield is 7.5 per cent. The dividend is covered 2.1 times and with a price-earn-ings ratio of 6.25, Forsyth Barr says that the company compares favourably with others of the same type. Yesterday 200 Rosebank shares were traded at 210 c; in Dunedin buyers were offering 210 c, sellers asking 225 c.