Premium on Northrop issue price

Press, 1 November 1984, Page 26

Premium on Northrop issue price

Auckland

The issue price of shares in the Northrop Group of companies will be 70 cents. A prospectus for the offer of 2,935,000 fully paid ordinary shares of 25c each at a premium of 45c was issued yesterday. Northrop Group is made up of Northrop Instruments and Systems, Ltd, Teltherm Instruments, Ltd, and McLean Information Technology, Ltd, which merged in August. The offer will open on November 22.

The group will trade in high-technology systems and support products within the health, science, field engineering, information, technology and control sectors. Estimated profit for the year ending March 31, 1985, of Northrop Instruments and systems is $700,000 (8.3 c pet share), and performance

to date is in line with projections. Profit is projected in increase to $850,000 (10.1 c per share) in 1986. Based on the issue price of 70c, forecast price-earn-ings ratio for 1985 is 8.4 and for 1986, 6.9. Return on shareholders’ funds is forecast to be 26 per cent at March 31, 1985. Estimated dividend for the six months to March 31, 1985, of 2 cents per share represents an annual rate of 16 per cent Dividend for the year ending March 31, 1986, is projected at 4.75 c per share to show a dividend yield of 6.8 per cent on issue price. All 2,935,000 shares had been reserved for the organising brokers, O’Connor Grieve and Company, and other members of the New Zealand Stock ' Exchange and their clients.