Omnicorp profit above forecast

Press, 24 April 1986, Page 26

Omnicorp profit above forecast

Omnicorp Investments, Ltd the Auckland-based investment company, yesterday announced a maiden audited group net profit of $4,011,000 before extraordinary items in the 11 months to March 31. This was 98 per cent above the original prospectus forecast $2,027,000. After writing off preliminary expenses of $78,000 as extraordinary losses, the final profit is $3,933,000. The directors have declared a maiden dividend of 0.5 c a share (1 per cent), which is in line with their policy of making minimal distributions intially. A one-for-four renounceable options issue has also been proposed. The options are to be offered at a price of 50c each, with the right of conversion to one new share on payment of a further 50c on March 31, 1991. The directors said they believed the options

would hold an attractive rights value for shareholders. The options will participate equally with existing ordinary shares in respect of all bonus, cash or other issues made. They will be transferable, but have no voting rights. The new shares will qualify for dividends declared in respect of the financial year ending March 31, 1992. “The result was most satisfactory for the opening period,” said Omnicorp’s chairman, Mr Lloyd Morrison. “We have developed an excellent base for the coming year, and are confident of a substantial profit increase for the next financial year. “These profits consist of conservatively stated cash earnings. No unrealised profits are included and all interest costs and other expenses have been fully written off,” he said.

Omnicorp would be chasing both trading opportunities and long-term strategic positions, this year mainly in New Zealand and the United Kingdom. It would be making a number of significant moves in New Zealand and would establish an office in London, he said. The turnover was not stated. Tax took $165,000, the dates for the dividend and the options issue will be announced later. At March 31, shareholders’ funds totalled $53.4M, and in addition the investment fluctuation reserve stood at SB.IM. Total assets were $80.2M. In accordance with Omnicorp’s accounting policies, the investment fluctuation reserve includes $2.2M in realised gains from the partial sale of investments which have been used to write down the cost of the remaining shares.