Marac Aust. in profit

Press, 30 September 1983, Page 20

Marac Aust. in profit

PA Wellington The Marac Group’s 50 per cent-owned subsidiary, Marac Australia, has recorded a profit for the first two months of the year, the chairman, Sir James Fletcher, told shareholders at yesterday’s annual meeting in Wellington. Elaborating in response to a shareholder who had said that the loss-making Australian operation had been the “sour grape” in Marac’s stable and that the Australian penetration by the company both in com-

puters and finance had been won at a very high cost, Sir James said the setbacks had been the result of a variety of serious troubles.

It had taken a long time to achieve a satisfactory settlement on the dispute over the original investment in Marac Finance Australia. He was unable to expand on this because of strict conditions of secrecy. “But it was a satisfactory settlement which we regarded as a reduction in the price we paid initially for the Australian purchase.”

The deal had been complicated by the attitude of the Australian Foreign Investment Board over 100 per cent acquisition.

“The matter is still not entirely resolved, and we don’t have total ownership and control.” However, the Australian operation was now a much more integrated one. The Australian markets were very difficult, especially New South Wales. “And we went there at a bad time when markets were very depressed.”