Market benefits Leyland Growth

Press, 1 November 1984, Page 26

Market benefits Leyland Growth

Leyland Growth, the equity investment company floated by Leyland Investments, has posted a $250,514 profit after tax in its first two months of trading. The chairman, Mr John Strevens, yesterday described the result as an encouraging start for the company, and one which demonstrated that Leyland’s fund manager, NZI Investment Services, Ltd, had adapted well to the new investment conditions arising from the change of Government. The company’s income was $336,181. After provision for tax of $85,667 (including deferred tax of $20,158), profit before extraordinary items is $250,514. This figure included $120,499 in unrealised gains on shares (calculated at 80 per cent of the excess of market price over cost price).

Mr Strevens said in light of the performance it had been decided to Write off immediately against profit the company’s preliminary expenses of $338,464. These expenses were in line with provisions in Leyland Growth’s prospectus.

Mr Strevens said the market in the immediate future looked volatile and uninviting to investors, but an uncertain market was the ideal environment for a managed fund with the bulk of its funds in liquid investments.

He said NZI Investment Services had invested 80 per cent of Leyland’s funds in liquid, fixed income investments and only 20 per cen in shares. As a result, Leyland was “well placed to take advantage of changing market conditions and opportunities.”