Westbridge expects lower result

Press, 27 October 1982, Page 32

Westbridge expects lower result

Westbridge Holdings. Ltd. the Westport-based investment company, expects its 1983 profit to be below that earned in 1982. said the chairman. Mr T. M. Scanlon, in the annual report.

This was because of the non-recurring nature of part of the past year's income.

The 1982 result included a substantial element of profit from the sale of assets, together with an increased equity profit from Midwest Finance Holdings, Ltd. Apart from Galway Properties, Ltd, (58.4 per centowned) obtaining a direct interest in a finance company. the Westbridge group had now eased all trading activities, and had assumed the role of an investment company, Mr Scanlon said.

Rationalisation of the group’s activities continued during the year. One-half of the property owned by Betts Properties. Ltd, was sold and the sale of the remainder was expected during this financial year. The business run by Buller

Bridge Motels. Ltd, was sold as a going concern and under its new name of Como Holdings. Ltd, it bought the Onehunga property owned by Galway Properties, Ltd.

The investment in Bridgevale Mining, Ltd. was increased with the purchase of 360.000 ordinary shares, taking Westbridge's interest to 16.8 per cent. The principal interests of Westbridge were in property, the shares held in Bridgevaie Mining, Midwest Finance Holdings (49.9 per cent), and Galway Properties. Mr Scanlon said.

The group net profit rose 73.5 per cent to $167,832 in the vear to March 31, including '547,170 ($25,532) as the equity profit from Midwest Finance Holdings. “The share of profits of Midwest Finance Holdings is exceptional, and will be substantially less in the 1983 year,” Mr Scanlon said. Although the assets and liabilities of Commercial Credit Corporation. Ltd, the Auckland finance firm purchased by Galway Properties

from Midwest Finance Holdings. were included in the balance sheet, the profit earned by the company has not been included in the' final result, he said.

Group turnover fell 41.8 per cent to $346,573. The profit was after providing $10,439 less for tax at $3458. and nothing for decpreciation ($6691 previously).

A recommended final dividend of 1c a share gives a steady annual rate of 3c a share (6 per cent) on capital increased by the issue of 150,000 shares as part consideration for increasing the Bridgevale interest. The dividend requirement is $22,500 and it is covered 7.2 times by the profit after allowing for the preferences dividend.

Shareholders’ funds rose $410,073 to $1,757,378, including issued capital up $200,000 to $500,000 after the issue of ordinary shares to help purchase the Bridgevale shares, and the issue of 16 per cent convertible preference shares. The net current deficit increased $99,645 to $170,003.