Venturecorp falls $670,000

Press, 20 March 1987, Page 10

Venturecorp falls $670,000

PA Wellington Venturecorp Investments, Ltd, yesterday reported a net profit for the half year ended December 31 of $128,000, down from $670,000 in the previous corresponding period. A $160,000 loss before tax ($979,000 profit) was offset by a tax credit of $289,000 ($306,000 loss). But a net rise in Venturecorp’s investment revaluations reserve of

$850,000 and a increase in its realised capital gains reserve of $383,000 lifted the final result to $1,361,000.

The directors said that was more than double the comparable 1985 result of $670,000. They said the rise in the investment revaluation reserve was principally in relation to the company’s interest in Kiwi China Prawn Company, in which Kupe Investments, Ltd, has recently acquired a holding.

It also accounted for losses from the Onyx Waiotara Fitch Fur project, as previously reported.

“This revaluation is in accordance with the company’s accounting policy which recognises a change in valuation is appropriate when a market value has been established for an investment through the sale of shares to a third party,” they said.

Venturecorp’s chief executive, Mr Graham

Perrin, said he considered the result very encouraging, as it gave the first tangible sign of the real worth of the company’s investments. The outlook for several of Venturecorp’s other projects is very promising and further revaluations are likely. He said the directors expected the full year dividend to be at least the level of last year, with shares available in lieu of dividends. No interim dividend is payable.