Fleur profit forecast for floated company

Press, 8 March 1984, Page 29

Fleur profit forecast for floated company

PA Auckland Fleur International Corporation, Ltd, a recentlyformed flower exporting company which will offer shares for public subscription later this month, is predicting a tax-paid profit of $274,000 in its first year. The prospectus for the share issue predicts that profit will grow from $274,000 for the year to March 31, 1985, to $598-000 in the March, 1986 year and $1,338,000 in the March, 1987 year.

Assuming Fleur Internatonal achieves or exceeds the profit forecasts, it is proposed that a dividend of 4c a share (8 per cent) will be declared in respect of the 1985-86 financial year. That dividend will be covered 1.3 times by forecast earnings of 5c a share. Profit and dividend predictions in the prospectus also suggest a dividend of 5.5 c a share in respect of the March 1987 year. The prospectus is for a public issue of 11,998,000 ordinary shares of 50c each at par, payable in full on application. Of the 11,998,000 shares, 1.1 million have been reserved for directors and associates providing special facilities on the company. The organising brokers to

the issue, Morrow and Benjamin, have been reserved 8,998,000 for allocation.

There will be a public pool of 3 million shares. The issue has been underwritten by C.B.A. Merchant Finance, Ltd.

The issue will open on March 29 and will remain open until on April 6 unless filled earlier.

Applications must be for a minimum of 500 shares and thereafter in multiples of 100 shares. The shares are payable in full on application. The directors warn that the shares to be issued under the terms of the prospectus must be considered speculative, as flower production and trading can be affected by climatic conditions and market forces.

Investors should also consider the fact that the comnis new and has no ng record, they say. “The financial estimates have been prepared in a conservative manner to take these factors into account.”

Fleur International is being promoted by Kaytrac Management, Ltd, which was formed in 1981 to organise syndication of horticultural properties and has been successful in

launching several new production units.

The Kaytrac Group will have no financial interest in Fleur other than an option to subscribe for 400,000 ordinary Fleur shares at a premium of 10c a share, this option to be exercised before April 1, 1987. Fleur has already bought a fully developed arid producing floriculture property at Henderson, West Auckland, for $1,540,000. A further 16.2 ha site is to be bought in South Auckland, to be the centre for further propagation and outdoor crop production. The board of directors of Fleur is made up of Sir Lloyd Elsmore (chairman), Mr M. R. Tracy a chartered accountant (chief executive), Mr M. A. Macdonald, a solicitor, Mr C. C. McPhail, an importer and exporter; Dr R. A. J. White, floriculture consultant, and Mr Sho Hayashi, a Japanese flower importer and wholesaler.