Baker predicts downturn in economy

Press, 13 July 1985, Page 23

Baker predicts downturn in economy

PA Wellington Contraction of the economy will bring a general downturn in property development, the chairman of the Auckland-based Baker Group Corporation, Ltd, Mr J. G. Baker, said in his annual report. But Baker Group, which is involved in property, building and engineering, was “well-placed” to continue through this period with a minimal amount of property space unleased, he said. All companies in the group traded well in the year to March and group profit is expected to be ahead of last year’s earnings. The group had unused credit facilities which ensured that project opportunities could be undertaken on merit rather than on the availability of finance. At March 31 the group

had no overseas borrowings, but since then had raised capital off-shore at favourable rates. Possible exchange rate fluctuations were being covered by the full provision against earnings of present New Zealand rates of interest. “The group will continue to retain as many of its current developments as possible. During the current year the value of the group’s property investment portfolio is expected to rise by $l5 million from its March 1985 level of $9.7 million to reach $25 million,” Mr Baker said The biggest shareholder in Baker Group, at balance date, was Chase Securities, Ltd, with 30.11 per cent, followed by Excellent Investments, Ltd (21.70 per cent), Inaudible Enterprises, Ltd and Refined Enterprises, Ltd with 8.68 per cent each.