Eastern loss

Press, 18 February 1986, Page 30

Eastern loss

PA Wellington Eastern Deer Corporation, Ltd, which listed on the Stock Exchange last year, has reported a net loss of $460,000 for the period from March 8 to November 30. Income during the period was $474,000, but the directors said that no progeny had been available for sale. The management was planning to sell the company’s 1985 progeny in April and May this year. This would constitute its major revenue source. Last August the directors reported to shareholders that demand for progeny was expected to be strong and forecast a maiden profit for the period ended May 31, 1986, at about double the prospectus forecast. “The directors now antici-

pate that the maiden profit will be substantially better than the prospectus forecast of $455,000 but lower than the previous forecast," the statement said.

"This is primarily due to the uncertainty created by the recent Government announcement of major changes to the method of determining taxation for livestock farming." The directors believed that, irrespective of tax incentives, prices of deer would stabilise at present levels. These equate to an assessment of the underlying economic value of venison and velvet production.

The company was diversifying by farming angora goats in Australia, with 312 Australian angora does bought on "favourable terms”.