More losses forecast

Press, 3 November 1984, Page 23

More losses forecast

PA Auckland Auckland-based Stereo FM, Ltd, has reported a ; further loss in the Septem- | ber half-year and is project- • ing more losses. "F • The operating loss, is i 5296,811 and is greater than the 5246,700 loss in the 1983 period. Directors say they expect further losses up to 5500,000 “until the turnaround is achieved.”:- ■ They note significant sue-

cessive changes of management which have resulted in control of the company now being held by Cara Everard, Ltd, of Auckland. The shareholders are Barrie Everard family (75.1 per cent) and the Sydney-based Triple M Broadcasting Co., Proprietary, Ltd, (24.9 per cent). The directors say Triple M intends to increase its holding to parity with the Everard family, subject

to Overseas Investment Commission approval. Substantial loan advances up to $500,000 during the current half-year to March 31 are being provided by the new majority shareholder, the directors say. Sales for the present quarter have “taken an upward trend” with good increases in October and higher orders for November and December, they say.

No dividend is likely until the cash resources are generated from net profits and reach an acceptable level for payout “This level is unlikely to be attained before the 198687 financial year,” the directors say. Although a period of tight budgeting and a “fair degree of financial stringency” lies ahead, the directors say additional expenditure on improved programmes is needed and planned. They are confident “innotative and assertive” new sales policies and programmes being introduced wil produce the required results.