Barclays NZ back on profit track

Press, 24 April 1986, Page 26

Barclays NZ back on profit track

Barclays New Zealand, Ltd, is back on the profit track after a 52 per cent profit slide last year, according to the chairman, Mr Bill Shaw. Speaking at the company’s annual general meeting in Wellington yesterday, Mr Shaw said that results for the first quarter of this year were “well ahead of the corresponding period last year.” He said what was encouraging about this was that the improvement was spread across all sectors. Mr Shaw said that trading conditions were diffi-

cult last year because of the tight liquidity, and Barclays was determined to do better this year. He gave a pat on the back to the Reserve Bank for the handling of liquidity management over the March tax take. This took upward pressure off in : terest rates compared with previous years, although he warned that “we have a long way to travel yet.” Barclays has nothing to expect in the future other than increased competition, but has put “proactive planning” in place and is making efforts to restrain costs, said Mr Shaw. The company has completed a tie-up with the Barclays International inhouse computer which should give increased information in the world foreign-exchange and money markets. The installation was made at “considerable cost.” Before the annual general meeting, a special meeting was held to approve the issue of bonus shares in lieu of dividend. More than 50 per cent of shareholders holding 85 per cent of shares have elected to accept the bonus shares in lieu. This has meant 450,000 new shares have been issued while the dividend payout was $105,000. One shareholder, Mr William Beutner, sug-

gested that the way the bonus share entitlement was calculated “artifically deflated” the value of the bonus shares. In reply, Mr Shaw said the price was based on the average price five days before the announcement, and this was fair. Directors’ fees were raised from $lOO,OOO to $130,000, which was in line with the general level of increases in other sectors, according to Mr Shaw. The number of directors was increased by one to nine. After the meeting, banking services manager, Mr David Sims, said that Barclays have recently taken a "strategic decision” to take a higher profile in the market. He said that while many customers knew the company through the Barclays name this position could not be taken for granted.