No interim reports by Waikato Stud

Press, 8 February 1985, Page 8

No interim reports by Waikato Stud

PA Wellington Waikato Stud, Ltd, will’ not present interim accounts for the period from July, 1984, to September 30, 1984. The company had sought and received a dispensation for that trading period from the New Zealand Stock Exchange. The company’s first full trading period will end on March 31,1985, and full reporting will be made after that date. “Because of the seasonal nature of the flow of income in thoroughbred breeding most of the company’s revenue accrues in the last quarter of the trading period, 1 ’ the directors said yesterday. “To provide trading results for the initial short period ended December 31, 1984, in

which virtually no revenue was derived, would, we believe, be misleading to our shareholders.” The company began trading only in July, 1984, and little revenue was received until 1985, they said. The directors also reported yesterday that institutional investors and brokers had taken up 2M ordinary 25c shares at 56c each and IM options at 26c each in Waikato Stud, Ltd. The issued capital of Waikato Stud is now 19,012,450 ordinary shares of 25c. Options to acquire 10,487,950 shares on or before May 31, 1987, at a subscription of 50c are outstanding. The chairman, Mr J. S. Lawrey, said yesterday that approval from the shareholders had been given for the

placement, and the move was made because the company was considered to be a shade under-capitalised.” The placement had been made to meet the increasing costs of loans because of the appreciating United States dollar, amounting to $600,000, before forward cover had been arranged on the Nelson Bunker Hunt loans. Additional interest costs were also incurred through the purchase of the Glencairn Stud property, next to the company’s own stud, he said. As announced, the gross receipts for the sale of yearlings amounted to $1,981,000. The company said this was substantially above the figure provided for in the company s prospectus.