Ariadne up 598 per cent

Press, 26 February 1987, Page 25

Ariadne up 598 per cent

NZPA-AAP Brisbane Bruce Judge’s Ariadne Australia, Ltd, is on track for a record year’s' result following a 598 per cent leap in group net profit to sAust6l.2s million for the six months to December 31. s

This compares with the June 30, 1986, full year profit of $55 million. According to Mr Judge, Ariadne’s executive chairman, shareholders can expect the new profit level to be at least maintained during the current year.

A 4.5 c interim dividend — compared with 3.5 c previously — has been declared. It is payable on March 24. The record interim result followed an announcement in New Zealand that Ariadne is selling its remaining 47 per cent shareholding in Renouf Corporation (see story this page). Mr Judge said the deal, subject to the usual statutory approvals, would realise SNZ72O million to Ariadne. Ariadne would direct these funds into its offshore holdings, particularly the joint venture with former U.S. Treasury Secretary, Mr William Simon.

Last November, Ari-

adne and Mr Simon formed the Los Angeles based bank, International Financial Services Inc. Other areas to benefit from the Renouf share sale will be the financial services group Goode, Durrant and Murray in Britain, and Impala Pacific in Hong Kong which is the joint venture company for Renouf and Ariadne.

Mr Judge said the New Zealand sale would also allow Ariadne to substantially reduce borrowings “and thereby underwrite the company’s ability to generate future profits.”

Ariadne’s record interim result was achieved on revenue bf $604 million — up 1108 per cent from $5O million in the previous corresponding period.

It also came after allowing $15.6 million for income tax (nil previously), $44.3 million for interest charges ($5.2 million), and $11.6 million for depreciation ($260,000). The interim profit increased shareholders’ earnings per share to 13c from 4.35 c on capital which was increased by a one for six bonus issue and a one for four rights issue that raised $lB5 million.