Omniwell-based

Press, 17 June 1986, Page 26

Omniwell-based

Omnicorp Investments, Ltd, has taken several long-term strategic positions that should develop as future profit bases for the company, the chairman, Mr H. R. L. Morrison, says in his review with the annual accounts. In addition, the company’s share investments have shown a considerable unrealised gain, he says, that will be reflected in future reported profits. (In a reference to the accounting approach later in the review Mr Morrison says that gains from share investments are not recognised as profits until the cost of the investment parcel has been completely recouped.)

“Our balance sheet is highly liquid, with significant gearing potential,”

he says. Cash assets represented 18 per cent and shareholders’ funds 67 per cent of total assets. Share investments represented 6(j per cent of total assets (74 per cent on shore, 26 per cent offshore.) . The first 11 months, ended March 31, was a period of consolidation. “In the year ahead, we expect to make a number of significant moves in the sharemarket to develop our strategic positions and to start* the building of our operating base. We will also realise gains on a number of our trading and short-term investment situations.

Mr Morrison says that the directors are confident of reporting substantially increased profits

and strong net assets growth this time next year.

The chairman says that during the period under review it became apparent that having three independent major shareholders with different aims and views was not an appropriate structure for Omnicorp.

This awareness led to the sale of Equiticorp’s and part of Rainbow’s shareholding to Chase Corporation, which now holds 50 per cent of the company. As announced, the first year’s operations produced a satisfactory result, with a net profit for the 11 months, at $4 million, almost double the prospectus forecast.