Mace half profit near $1.5M

Press, 21 April 1986, Page 29

Mace half profit near $1.5M

PA Wellington Mace Development Corporation, Ltd, made an aftertax profit of $1,491,000 for the six months to February 29.Tiiere were no minority interests or extraordinary items.

Mace’s chairman, Mr R.'L. Congreve, said figures from the previous half-year had not been included as the company had undergone so much restructuring that they would not give a valid comparison. The interim ordinary dividend would be 4c per share, payable on May 16. The shares will trade ex dividend on April 30.

Preference stock-holders would be offered the option of converting five cumulative preference stock units to one ordinary share. A meeting would be held to vote on the scheme on May 19, he said. A cash issue subsequent to the preference stock conversion will be made at 250 c per ordinary share on a one-for-five basis.

Mace directors said the cash profit reported for the year did not included property revaluation or rental income form properties owned by what was previously Woolworth (NZ) Properties, Ltd. The result was particularly pleasing as all costs of the restructuring involved in the listing of Mace had been absorbed and written off, the director said.

Excluding restructuring costs, the return on average shareholders funds was 20.4 per cent. Earnings per share were 13.8 c for the six month period. The full year profit forecast of 53.5 M would be exceeded by a significant margin, the directors said. Mace would concentrate on its main business activity, undertaking property development which is realised in cash profits.

Mace was also involved in other commercial activities where the company could use its property and commercial restructuring expertise. There had been substantial progress made on both fronts, Mace directors said.

Property development activity was intensive and varied with 12 commercial and industrial projects either sold and leased or completed and leased. Several new industrial and commercial developments would be started during the next six months, and announcements would be made soon on three major innercity high-rise office developments.

Market demand remained strong for both investment and leasing of well-sited qual-

ity industrial and commercial properties, the directors said. Mace Equities, begun, dur-

ing the last six months, holds equity investments in listed companies with a market value exceeding cost by more than $600,000. The company had also been involved in the establishment and promotion of an investment partnership, they said.

Mace has moved to new premises in the Shortland Centre in central Auckland.