Euro-National trebles profit

Press, 22 May 1986, Page 22

Euro-National trebles profit

Euro-National Corp. Ltd, the Auckland merchant banker and financier, announced an audited tax-paid maiden profit for the eight months ended March 31, of $2,914,000, almost treble the original prospectus profit forecast.

The profit was 38 per cent ahead of the $2.1 million revised forecast at the time of the interim result Turnover was $6,930,000, and no tax was paid.

The result was achieved on an issued capital of $5,112,500, giving earnings a share of 43c. The final dividend recommended is 7.5 c a share, but is not payable on shares issued to buy 55 per cent of Visionhire Holdings, Ltd. Books close July 9.

The directors are recommending a dividend re-investment scheme, giving shareholders the right to take shares in lieu of cash dividends.

This requires approval for changes to the com-

pany’s articles of association from the annual meeting. The value of the shares will be based on 70 per cent of the average Auckland market price over the five days preceding the fortnight before the register is closed.

Towards the end of the financial year, EuroNational made an unconditional take-over offer for Visionhire Holdings, a television and video rental company. At balance date Euro-National had received acceptances for 55 per cent of the shares, and currently has acceptances for 85 per cent. Euro-National’s managing director, Mr R. M. Petricevic, said the company believed expansion of Visionhire’s range of products on lease, with more favourable funding sources provided by EuroNational, should substantially increase profitability. Since balance date, Euro-National also acquired a 19.6 per cent interest in Clearwood Thoroughbred Holdings, Ltd.

“This will provide the company with a vehicle through which to continue its syndication of thoroughbreds,” Mr Petricevic said.

“It is also anticipated that the close working

relationship the company has with Kupe Investments, Ltd, will provide entrepreneurial input to substantially increase the profitability of Clearwood Thoroughbred Holdings, Ltd.”

All statutory approvals had been granted for Euro-National’s acquisition of a controlling interest in Bestobeli Australia, Ltd. A meeting of shareholders would be held on May 30 to approve the reconstruction of Bestobeli Australia into Euro-National Australia, Ltd, which would be 60 per cent owned by EuroNational Corp.

Euro-National Australia would provide the group with a listed subsidiary in Australia capitalised at sAustlO.l million. “The aim will be to locate businesses in the financial and related services area with growth and profit potential," he said. “The first venture will be the acquisition of the Smith, Curry, and Partners partnership, which will proved a strong financial packaging group in Australia.” The Euro-National directors predicted a group profit after tax of $9 million for the year ended March 31, 1987.