Stronger Saudicorp links

Press, 17 June 1986, Page 25

Stronger Saudicorp links

Saudi New Zealand Capital Corporation, Ltd (Saudicorp), will seek a more significant trading involvement in its equity interests and joint ventures, says the managing director, Mr R. L. Gaskell, in the annual report. Saudicorp’s experience has shown the need to have a close, continuing liaison between its executives and the directors and management of the companies in which Saudicorp has invested, to achieve their potential for growth and profits. Although more than half of the gross income is earned from fee-earning corporate advice and finance work, fixed interest securities, and share trading, direct investment will continue to

be the main emphasis of Saudicorp’s activities, he says. The directors are confident that the investment group will perform strongly in its first full year as a public listed company. Although the outlook for the New Zealand economy may not seem favourable, the group has started the new financial year positively, Mr Gaskell says. As reported, the group net profit rose 18.5 per cent to $4,209,000 in the year to March 31, compared with the previous corresponding period. The result was achieved on trading income up 50.7 ' per cent to $9,058,000. After interest expenses and trading costs, the pre- .

tax trading profit was ahead 28.7 per cent to $6,394,000. The profit was after providing $769,000 more for tax at $2,185,000, and $22,000 more for depreciation at $53,000. Saudicorp’s shares were listed on an ex dividend basis in April so no final dividend is payable for the year to March 31.

Shareholders’ funds rose $716,000 to $22,314,000, including ordinary capital up $7OOO to $20,007,000, after 700,000 ordinary 100 c shares were issued paid to 1c each to management. Working capital fell $2,322,000 to $3,259,000, and the current ratio eased from 1.3 to 1.1 to one.