UTD float

Press, 13 June 1984, Page 30

UTD float

PA Auckland United Transport Holdings, Ltd, which expects to be listed late next month, is forecasting a tax-paid profit of $777,000 in the year to March 31 next, according to the prospectus. The projected profit performance represents a 17.5 per cent improvement over the group’s 1983-84 result of $661,041 (which was 11.2 per cent down on the previous year).

The 1984-85 forecast translates to earnings per share of 13c — from which total dividends of at least 5c a share (10 per cent) will be distributed from tax-free sources.

Subscribers to the 3 million United Transport shares being offered to the public at 80c will be paying a forward price-earnings multiple of 6.2. The dividend yield is 6.3 per cent. The issue price is 6c above the group’s 74c net asset backing. Half of the group’s issued capital is being retained by the existing directors of

United Transport — Messrs F. H. Gibson, D. J. Gault, M. G. C. Darroch and W. J. Gibson — and their families.

Commenting on the group’s near-term prospects, the chairman and managing director, Mr F. H. Gibson, says “the government’s move towards deregulating the transport industry further enhances prospects for United Transport.”

The new licensing laws were expected to create a more competitive environment, and help to develop a more efficient road transport operation.

“The phasing out of the 150 km rail limit should provide substantial new opportunities in line-haul cartage for road transport operators."

The latest audited accounts of United Carriers (the group’s main operating arm) show that total assets at the end of last March were about S6M ($5,134,624 previously).