TAG hopes modest

Press, 31 August 1984, Page 8

TAG hopes modest

PA Wellington TAG Corporation did not expect fast short term growth in profitability, its chairman, Mr Peter Wise, told shareholders at yesterday's annual meeting. The meeting was the first held under the company’s new name, after last year's merger of the listed company, Spedding Consolidated, and the unlisted interests of The Anthony Group, Ltd. Because of investment strategies undertaken over the last year, the company was confident of meeting more long term objectives, Mr Wise said. Since balance date, TAG’S Potter Group subsidiaries had traded well, and were well placed for any increase in building activities.

“Likewise our recent investment in Arnold and

Wright positions us well for any increased activity in the electrical sector and we look forward to gains in this area," he said. But plans to invest further in property were being delayed until there was a clear indication of the new Government’s policy in that area. Several new projects were being considered but it was too early to comment on these, Mr Wise said. They varied in nature and size, and there was a possibility of some activity in Australia. At balance date, the ratio of shareholders’ funds to total funds stood around 58 per cent, and there was “considerable potential” to increase the company’s gearing at the appropriate time, said Mr Wise. TAG’S joint venture with the Singapore-based food

company, Bousteadco, which turned in considerable losses in the last financial year, continued to give problems, but it was hoped these were short term.

By contrast, the joint venture with Zip in the appliance and houseware market was ahead of its sales budget for the first four months of the year, although competition was strong and the market difficult.

Answering a question from a shareholder, Mr Wise said it could be imprudent to give a detailed breakdown of the trading results of each of the company’s divisions since many operated in sensitive markets. But the inclusion of figures showing the return on investment would be considered for next year’s annual report, he said.