Mair bonus issue

Press, 29 February 1984, Page 29

Mair bonus issue

Mair and Company, Ltd, is planning a one-for-three bonus issue and a one-for-eight rights issue after a 7 per cent increase in taxpaid profit for the six months ended December 31. Both issues will be based on the same capital, as at December 31, of 5,353,479 50c shares, the managing director, Mr A. D. Shadwell, says in his half-yearly report. The cash issue will be at a premium of 200 c, and will be renounceable. Based on the last share price before the announcement (565 c the theoretical value of the rights would be about 155 c. Mr Shadwell says that the cash issue will make up a shortfall in recent purchases of shareholdings, converting Christchurch Carpet Yarns, Ltd, and Stag Corporation, Ltd, from associate companies into subsidiaries. “The directors appreciate that it is the second call on shareholders within 12 months,” he said. “However, as a result of the purchases stated it is necessary to protect our equity. In addition there is a substantial bonus element in the cash issue, to shareholders’ benefit. The directors intend to maintain the dividend at a mini-

mum of 25 per cent on the increased capital. Bottom-line profit, at $1,477,526, was 25.2 per cent higher, but this figure includes the result of Christchurch Carpet Yarns. » An interim dividend of 12.5 per cent (6.25 c a share) has been declared and will be paid to shareholders on April 12. The whole of the dividend will be paid from the Share Premium Account, and will be tax-free in shareholders’ hands. The share register will be closed on April 5 at 5 p.m. and reopen on April 6 for the purpose of entitlement for dividend, bonus issue, and cash issue. Entitlement letters together with bonus share certificates will be posted on April 12. The cash issue will close on May 17. Shadwell says that the first six months of the 1983/4 year have produced rather mixed results. “The profit increase of 25 per cent includes the result of Christchurch Carpet Yarns as a full subsidiary. Allowing for this, an increase of about 7 per cent was achieved over last year’s figures. “The wool stream turned in similar figures to last year, apart from yarn which showed an improved result.

The leather stream has had a downturn locally in both trading and processing, although Glamma Leathers, Ltd, in Hong Kong has had a much improved result, as have our tallow operations. “Our food stream has had a good six months although our sheep meat operations have fallen away sharply because of the constrictions forced on the company by the New Zealand Meat Producers Board’s new marketing policy. On the other hand both Colt (N.Z.), Ltd, and Mair Industrial Marketing, Ltd, have fallen behind. “The outlook for the second six months indicates an improvement in most areas. The world recession is now receding in our major markets and better commodity prices are apparent. We would expect the trend to continue for the balance of the calendar year. An abbreviated balance sheet shows a strong financial position. Net current assets (current assets of $37.4 million minus current liabilities of $36.7 million) of $681,727, investments of $5,703,024, and fixed assets of $14,967,476 are financed by $16,982,133 in shareholders’ funds (79.5 per cent) minority interests of $594,844, and term liabilities of $3,775,250.