Big profit lift for Williams Property

Press, 8 February 1985, Page 8

Big profit lift for Williams Property

PA Wellington The directors of Williams Property Holdings, Ltd, announced a near-150 per cent profit increase in a tradingprofit of $1,000,165 for the year ended December .31. Last year, the trading profit was $401,022. No tax is payable. In addition, the company has achieved an extraordinary profit of S3M from its Jervois Quay land option. Preliminary share-issue expenses amounted to $93,363, leaving the company with a net audited profit after extraordinary items of $3,906,002, compared with $401,022 for the year ended December 31, 1983. In addition to the trading and capital profits, the company intends to credit to an asset-revaluation reserve an amount of $9,608,013, the amount by which the latest valuation of property assets, exceeds the previous valuation. A final dividend of 4.25 per cent, tax-free, will be paid from the share-premium account, making an ordinary dividend rate of 8 per cent, tax-free, for the year, compared with the prospectus forecast of 5 per cent. Since its restructuring as a public company about 15 months ago, the company has declared dividends from tax-

free sources totalling 53 per cent. This was consistent with the company’s policy of distributing substantial returns to its shareholders, directors said. Further evidence of this policy would be provided not later than the 1985 interim dividend announcement, when a comprehensive package of shareholder benefits would be announced. An independent valuer, commissioned by the company at the end of 1984, placed a value of S3SM on the Williams City Centre. The directors said it was the board’s policy not to deal with revaluation gains in the company’s trading result, but allow the net asset backing figure to reflect the increase in asset values. In total, shareholders’ funds have increased by $13.5M. Those trading profits, extra-

ordinary items and the revaluations, and as a consequence the net asset backing per 50c share has risen to $1.87.

The value of the centre will be further enhanced by the completion in June, 1986, of the 13-storey Plimmer Tower accommodation development. This was expected to add a further SIOM. Prospects for 1985 appeared satisfactory, the directors said. While the extension of the rent freeze in 1984 had limited rental growth, the return to free-market . conditions was welcomed, particularly as the rents of a substantial area of the city centre were to be reviewed in the first half in 1985. This, with further development proposals in hand and contemplated, should ensure a satisfactory performance in the current year, they said. The final dividend will be paid on April 4.