Prog Ent. moves south

Press, 13 July 1985, Page 23

Prog Ent. moves south

PA Auckland Progressive Enterprises, Ltd, plans to open a Foodtown supermarket in Palmerston North and three “3 Guys” outlets at Hillcrest (Hamilton), Rotorua, and Glendene (Auckland), in the present financial year, according to the annual report. The chief executive, Mr Graeme Kelly, says that, besides land acquired earlier, Progressive has also obtained land at Wanganui, New Plymouth, Miramar (Wellington) and Silverstream (Hutt Valley) for Foodtown supermarkets, and at Plimmerton, north of Wellington, for a distribution centre. “We have not previously held such an extensive portfolio of sites pending development,” says Mr Kelly. “Other opportunities are being negotiated ... Construction is under way in Palmerston North and Lower Hutt.”

Land was bought at Tokoroa and a lease taken for a supermarket in a shopping centre at Nawton in west Hamilton. Of the $42.3 million paid for “3 Guys,” $29.5 million represented land and buildings. The chairman, Mr R. W. Haworth, says $8.4 million goodwill in the “3 Guys” purchase has been written off After a careful review and improved performance of Georgie Pie family restaurants, the directors were now satisfied with the prospects of this company coming into profit. He says results since the acquisition of "3 Guys” are “most satisfactory.” Mr Haworth added: “We are confident that our doubly strong base business will ensure a continued satisfactory result during the next year, even after taking into account very high development activity?

As reported, Progressive reported a 29 per cent increase to a record after-tax profit of $10,015,000 in the March year. The purchase of “3 Guys,” which contributed for only two months, shows up in the accounts. Secured term loans are up from $2.2 million to $30.29 million, with fixed term liabilities up from $B.l million to $33.46 million. "Current liabilities rose from $29.48 million to $61.46 million. Current assets increased from $26.8 million to $53.59 million, and fixed assets from $69.4 million to $116.49 million. Shareholders’ equity is down from 61 per cent to 43.8 per cent, and gearing up from 12.1 to 30.9 per cent. Cash flow is up from $11.46 million to $14.7 million. Earnings on average adjusted shareholders’ funds edged up from 16.1 to 16.5 per cent.