Forest Invest. has resources for 12 months

Press, 4 July 1985, Page 28

Forest Invest. has resources for 12 months

Forest Investments, Ltd, the Kawerau-based forestry developer, has sufficient cash resources to meet requirements for about 12 months, says the chairman, Sir James Fletcher, in an interim report to shareholders. The company has not been successful in getting the Government to re-estab-lish the forestry encouragement grant, first brought in by the third Labour Government in 1973, after its decision to cancel the grant. In addition, the company does not qualify for finance now available from the Rural Bank for some afforestation schemes. Tasman Forestry, the majority shareholder, is studying finance options for all its forest holdings after the changes to taxation incentives introduced by the present Government, Sir James says. “In doing so, the company, Tasman Forestry, is taking into consideration the special need that Forest Investments has to solve its long-term finance requirements.” A big rain storm in the Mohaka Valley in March severely damaged the reading system and destroyed two important bridges. The forestry managers are plan-

ning an alternative access to the forest. Sir James says. The forests are in good health, and no significant levels of dothistroma were found in the annual survey. The company has planted 90.4 per cent of the 4050 ha forestry programme scheduled, and 186 ha is being prepared for planting. Once this is finished, the company will be 201 ha short of its goal, Sir James says. Forest Investments issued a “don’t sell” notice last week after news that the Auckland broker, Jordan Sandman Smythe, was standing in the market for 150,000 ordinary shares at 200 c each, compared with a last sale price of 165 c. However, the company’s acting chairman, Sir Russell Pettigrew, said the price was substantially below that being discussed with the party which had made the offer on June 24. As reported, the unaudited group net profit fell 12.5 per cent to $49,860 in the six months to December 31, compared with the previous corresponding period. Total income dropped 9.7 per cent to $106,188. The profit was after providing $4514 less for tax at $43,501.