Bright outlook for NZUC

Press, 29 June 1983, Page 22

Bright outlook for NZUC

There were some developments which could broaden the influence and potential of New Zealand United Corporation, Ltd, in international finance, said the chairman, Mr F. H. Renouf, in the annual report. The company had applied for one of the new licences available to increase the number of authorised foreign exchange dealers in New Zealand. During the year NZUC had strengthened this area of activity in both personnel and technical aids, he said. “Given the necessary licence, it is our intention to fully computerise the operation using proven Barclays (Bank International, Ltd) systems and back-up procedures.” NZUC had also established a Hong Kong subsidiary, which had become fully operational during the year. It earned a modest profit in its early months of trading. A share split of five 20c ordinary shares for every two 50c ordinary shares held has also been recommended to shareholders.

“This move is being undertaken mainly to achieve a more active market for the shares, and hopefully a larger shareholder base will emerge,” Mr Renouf said. As reported, the group net profit fell 13.6 per cent to $2,711,000 in the year to March 31, compared with the previous corresponding period. The previous profit included capital earnings of $1,681,000, but there were none in the latest year. The pre-tax trading profit more than doubled from $2,146,000 to $4,358,000. The tax provision rose $797,000 to $1,791,000, and depreciation rose $36,000 to $lOB,OOO. A recommended final dividend of 14c a share gives a steady annual rate of 25c a share (50 per cent). The ordinary dividend rate absorbs $1,375,000, and it is covered 2.0 times after allowing for the preference dividend. Shareholders’ funds rose $1,376,000 to $10,542,000, including steady ordinary capital of $2,922,000. Working capital rose $9923 to $10,707, and the current ratio improved from 1.01 to 1.08 to one.