Hellaby confident

Press, 19 December 1985, Page 34

Hellaby confident

PA Dunedin A prediction that R. and W. Hellaby, Ltd, could be one of the top performers of 1986-87 was made by the new chairman, Mr Bruce Judge, at yesterday’s annual meeting. Mr Judge’s. company, Ariadne, this year bought 40 per cent of Hellaby’s capital from Canterbury Frozen Meat, selling the three export meat works back to CFM, to start the transformation from a money-losing meat company to. an industrial investment compaz- Judge said with a smile that his elevation to chairman suggested a palace revolution. “In view of the changes in the company and the fact that I want to take a fairly direct role in looking at new businesses and the manner in which we are going to shape the company we decided this morning that Sir Alan (Hellaby) would stand down. I have been elected chairman in his place,” he said. Sir Alan and Mr J. G. Forsythe are the only remain-

ing directors from the previous board. Messrs W. R.. Jackson, G. J. Marsh, T. E. Moore and G. E. McKenzie have replaced Messrs G. S. Beca, R. H. L. Ferguson, R. T. Hellaby and T. N. Johnston.

Prospects had changed dramatically since October 1 with the sale of the export freezing works and related assets, Mr Judge said. The company made an aftertax loss of $1,459,000 (1984, $4,680,000 loss) in the year ended September 30. "The company’s profitability was very much dependent on the performance of the freezing works and, therefore, on the volume of beef throughput,” Mr Judge said. “Shareholders are no doubt well aware that during the July-September period the amount of beef available collapsed. The high overheads structure, built up in many of our national freezing works throughout the whole industry, is still a problem which has yet to be addressed in many cases.

"Fortunately, the sale of our works on October 1 for S4OM have relieved us of the dependency for future profits and corporate growth on that factor.

“Since October 1 much work has been done to transform the company into a major industrial growth stock.” Mr Judge said he had been associated for some time with the new Hellaby board members and. Messrs Andrew Strange and Tur Borren, executives of Abacus Holdings, which Hellaby is bidding to take over.

He said the restructure and shifting the head office to Dunedin would provide the base for what would become a “major industrial group, showing significant capital and earnings growth for the benefit of all shareholders.

“There are a number of things under discussion at the moment which will be of benefit to us but it would not be appropriate to say anything more at this stage,” he said.