Gen. Prop. result less than estimate

Press, 5 December 1985, Page 64

Gen. Prop. result less than estimate

General Properties Corporation, Ltd, the result of a merger between Northgate Properties, Ltd, and General Properties Consolidated, Ltd, earned a net trading profit lower than the directors estimated in their February merger details.

The combined company earned a net trading profit of $1,731,000, compared with an estimated $2 million, for the year to October 31.

This result was before unrealised gains on property values of $2,786,000, and $551,000 in extraordinary profits. If these are added to the latest result, then the final profit of $5,068,000 exceeds the directors’ total estimate of $3.5M.

The result includes 13 months trading from

Northgate and 12 months trading by General Properties Consolidated.

No comparative figures were given for the previous corresponding period because the directors said that the merged companies’ figures related to different periods. The chairman, Mr 0. R. Gunn, said that the audited net result did not include the profit accruing to the company after its acquisition of 50 per cent of the shares in West Plaza Hotels, Ltd. The shareholding was acquired one month before the balance date.

The joint venture company owned the existing West Plaza Hotel in Wellington and was constructing an international Plaza Hotel, with a combined worth of S4OM.

“West Plaza Hotel is performing ahead of forecast and it is expected this trend will be maintained,” Mr Gunn said.

The company had recently announced its entry into Australia as a developer. The directors believed this would result in the company pursuing further international activities. 4

The last 12 months had • * been difficult because of the economy, but the directors rconsidered the expanded *1 company was in, a strong j 1 position to continue to grow in the property - sector. ' The group has also an- ” nounced a one-for-five *4 bonus issue, and the shares w arising from the issue are included in ' the recom- - l mended final dividend of 2.5 c a share (5 per cent).