Shareholders’ equity in Radio Otago up

Press, 16 April 1986, Page 45

Shareholders’ equity in Radio Otago up

PA Dunedin Shareholders have nearly tripled their equity in Radio Otago, according to the latest annual report. The balance sheet for the year to last November 30 shows shareholders’ funds were $1,078,765 ($351,291). The latest figure results from doubling of an aftertax profit for the year and a three-for-four cash issue at 100 c a share to fund the take-over of Underwater World in Queenstown. The cash issue also had the effect of taking some of the Brierley heat off the company. At last year’s annual meeting the chairman, Mr J. E. Farry, commented on the threat to the independence of local radio from the hold-

ings taken up by Brierley Investments, Ltd. These purchases had been mainly made indirectly through Hauraki Enterprises. In the South Island the purchases were a step further away, Hauraki holding a big stake in Radio Avon, which has invested substantially in Radio Otago and Foveaux Radio. The latest Radio Otago report shows Radio Avon’s holding has been reduced from 22.1 per cent to 20 per cent. Two other holdings with question marks against them are Leadenhall Superannuation Nominees, which holds 9.1 per cent (down from 10 per cent last year) and Forbarr Nominees, which holds 8.4 per cent (not mentioned last year).

Balancing these are Mr B. M. McGill’s 9.1 per cent, and Cargill Holdings with 8 per cent. Mr McGill acquired his shares as part payment for the acquisition of Underwater World. Cargill Holdings is controlled by Mr J. W. Gilks, a director. Mr Gilks said that his holding coupled with those of his co-directors, Mr W. J. Rutherford (10.7 per cent) and Mr J. E. Farry (6.4 per cent), gave a solid 25 per cent representation by Otago interests. He also expected the holdings of Radio Avon, Leadenhall, and Forbarr to crystallise in the next year. Radio Otago doubled its after-tax profit to $228,200 ($123,106). Revenue was up 24 per cent at $2,246,554 ($1,813,333).