Nathan $9M profit on merger sale

Press, 17 December 1985, Page 30

Nathan $9M profit on merger sale

PA Auckland The sale of all but 20 per cent of the shares in Woolworths (NZ) Properties, Ltd, to allow a merging of interests with Mace Developments, Ltd, after balance date will yield the Woolworths parent, L. D. Nathan and Company, Ltd, a capital profit of about S9M. This, is disclosed in the annual report by the managing director, Mr B. S. Cole. Mr Cole says the move will lead to an early redevelopment of a number of retail properties, including the Victoria Street, Hamilton, variety store. The transaction, Mr Cole notes, deals with only part of the group’s property portfolio. Four stores closed during the year. There were 10 new stores or extensions and eight projects in progress or planning. Other ventures in prospect include Combo stores, combining grocery and variety goods, four Maximart discount department stores under construction in the Auckland region, as well as a “superstore” in Newmarket, Auckland.

Investment in travel is under review, primarily to determine compatibility ” with traditional developments, although the 50 per cent-owned Nathan’s Jetset Travel enjoyed a strong - performance. Upgrading of variety division stores will become evident in two categories — central business district and satellite - under the new names, L. D. Nathans Big City Stores and Mark 11. The stage has been set for a recovery by Bond and Bond, says Mr Cole. He notes that the group, with an average tax cost of 38.3 per cent in the 1982-84 period, has not relied, and will not rely, on tax sub- ; sidies as a means of building results? ' As reported, group tax- ” paid trading profit was 32.2 per cent ahead at $18,889,000 “ in the August year. The accounts show term liabilities up from $48.1M at . $89.7M. Assets were $265M ($206.6M in 1984) and liabilities $155.3M ($153.8M). ; Shareholders’ funds were $151.7M ($117.5M). Fixed assets were $142.8M ($107.6M). »