Apex on target

Press, 18 June 1986, Page 36

Apex on target

Apex Group, Ltd, is on target for an improved result for the full year ending August 31, the chairman, Mr R. A. Burnside, says in the half-yearly report The improvement will be materially assisted by the divestment of its meat interests to the Primary Producers’ Co-operative Society, timed for the latter part of the second half. As reported, Apex earned a net profit of $4,934,000 in the six months ended February 28. Mr Burnside says comparison with the six months of the group’s first operating year in 1985 is not relevant, because of the growth of the capital base and the poor performance of the group’s meat assets. The meat industry as a whole was subject to delayed commencement to the season with further deterioration caused by an extended stoppage. Against this background, losses in the meat sector were minimised, says Mr Burnside, but he does not reveal the extent of the losses.

In the six months ended February 28 Apex Group’s investments in New Zealand and overseas were profitable. The group’s sharemarket activities were in those sectors of the economy that participated in the major gains, Mr Burnside says.

Because of the perceived possible future economic difficulties facing New Zealand, little exposure was taken in highly geared companies that might suffer an economic downturn.

The company has called an extraordinary general meeting of shareholders in Dunedin for July 7, to approve the sale of Canterbury Frozen Meat Company, Ltd, to the Primary Producers Cooperative Society and/or its nominees “on such terms and conditions as the directors of the company think fit.” The terms of the sale have not been disclosed. Shareholders will also be asked to approve a dividend reinvestment scheme.

The election price for bonus shares in lieu of dividend has been set at 312 c