Up, up and away to look at TNC

Press, 17 December 1985, Page 30

Up, up and away to look at TNC

Business editor

The new Australian controlling interest in Transport (North Canterbury) Holdings, Ltd, was in effect at the company’s annual meeting in Rangiora yesterday. Helicopters picked up sharebrokers and journalists at Christchurch Airport and took them on tours of up to an hour over the company’s operations before landing them at Rangiora for the meeting. A sharebroker and a merchant banker from Sydney were in the party. Last evening, a dinner was held at Noah’s for the visitors, from Auckland to Invercargill. Not the traditional style of a typical rural company. At the helm of TNC now is a group of Australians with about 38 per cent of the company’s shareholding. The Australian interest is an investment by Vanberg Proprietary, Ltd, of Sydney, the investment arm of Mr Paul Petersen, of Sydney, who also owns a construction company in Australia. His associates in TNC are Mr Warren Duncan of Sydney, a chartered accountant, and Mr Charles O’Neil, a Sydney businessman. Their investment arm in New Zealand is Southern Cross Enterprises, Ltd.

The Australians are reBnted directly on the by Mr Duncan, and by Mr Charles O’Neil, a Sydney businessman. Mr Gordon Orr, a Christchurch investment analyst, is an alternate director for the Australians. These are substantial but not huge Australian investors.

“If you rang the ‘Australian Financial Review’ and asked who I was they probably would not know,” Mr Duncan said. Six new directors were appointed to the board dur-

ing the year, after the change in control, and the appointments were renewed by the annual meeting yesterday. The new directors are Messrs Duncan and O’Neill; Mr Alan Williams, a Newmans director and a Christchurch businessman with road transport expertise; Messrs Peter Ammundsen and Robbie Dyce, senior executives of the Newman group; and Mr Mike Dormer, a Christchurch accountant and management consultant. Mr A. R. McGibbon was also re-elected a director.

Both Mr Langford, the chairman, and the Australian directors informally, emphasised that the plan was to put TNC on to a sound footing as a transport company, rather than to turn it into a mini-Brierley investment arm. However, a reasonable guess might be that it will be a springboard for “rationalising” rural transport in the South Island in conjunction with Newmans. The Australians have separate, unlinked investments in Queenstown condominiums.

They said after the annual meeting that they were attracted to New Zealand by the investment prospects, particularly in the South Island.

The Australian link came through connections of Messrs Dormer and Orr. Mr Orr says there is considerable Australian investment interest in New Zealand.

Mr Langford told the annual meeting that TNC would remain primarily a transport company based at

Rangiora. The company was operating efficiently at present, and the work rate was beginning to increase after an unusually slow beginning to the season.

Of the outlook, Mr Langford said:

“Despite some uncertainties inherent in the current economic and business climate, your directors believe that a well-managed efficiently operated company with specialised transport skills has a sound future. Transport (North Canterbury) Holdings is such a company and is well positioned to extend its leading position in the industry. “As its first priority, the company is securing a solid financial base for itself through immediate access to additional financial resources. The benefits to shareholders, staff and the local Canterbury community will become obvious during the 1986 year. “Further to this, the company also plans to broaden its economic interests by diversifying into allied activities, not necessarily restricted to the transport sector. The directors are confident that the company can, and should, secure growth opportunities that are both useful and valuable in establishing the company as a successful part of the region’s infrastructure. “Your board, after taking the action to date that it has, and after setting in train positive financial plans, is confident the company will improve profitability.” As previously reported, the company had a group net loss of $490,493 for the year ended September 30, compared with a profit of $510,949 for the previous 12 months. A one-for-three cash issue will be made at a premium of 180 c a share (total 280 c). A one-for-eight bonus issue will be allotted in February. The second issue will be on the expanded capital. Both of the issues will qualify for full dividends. The meeting confirmed a dividend of 7 per cent, payable on February 28, bringing the total dividend for the year to 17 per cent. At a briefing last evening, the directors said that they expect the trading profit for the present financial year to be ?1.2M. This is on the proviso that no tax is payable because of the carriedforward loss. The target return on shareholders’ funds for the year is 10 per cent.