Rainbow profit leaps

Press, 20 February 1986, Page 25

Rainbow profit leaps

PA Wellington Rainbow Corporation, Ltd, has announced a 387 per cent lift in net profit to $2,022,000 ($522,000) for the half year ended January 31. The result compares with a net profit of SI.4M for the full year ended July 31. Return on average shareholders’ funds was 27.2 per cent and earnings an ordinary share was 17c (annualised).

The unaudited result does not include any equity accounted earnings and is after tax of $llB,OOO.

An interim dividend of 2c a share (10 per cent) will be paid, with books closing March 27.

Rainbow said in a statement that highlights in the six month period were:- a placement-and-cash issue which increased shareholder funds by $9.9M to $20.6M; purchase of a 40 per cent interest in Kelly Tarlton’s Underwater World and 20 per cent interest in Masport, Ltd; sale* of a 20 per cent interest in Queenstown Resorts, Ltd.

The managing director, Mr Craig Heatley, said the performance of the investment division was of "material benefit” to the result, and there were exciting prospects for the division both locally and internationally.

The leisure division continued to perform to directors’ expectations. A "pay one price” user pass was successfully introduced to Rainbow’s End, the South Auckland leisure park, before Christmas