Wil. Neill seen as a top performer

Press, 24 July 1987, Page 18

Wil. Neill seen as a top performer

Wilson Neill, Ltd, was the leading share performer in the seven months ended January 31, 1987, according to a report by Wellington stock brokers, Francis, Allison, Symes and Co quoted in the company’s annual report.

Wilson Neill’s share price measured against the Barclay’s share index also ranked the group first out of 45 companies in the same period, the managing director, Mr Colin Herbert, said. In performance over time, Wilson Neill was ranked third out of 34 companies in the five years ended January 31, 1987.

Following Wilson Neill’s merger with investment company, Saudi New Zealand Capital Corp Ltd in December, 1986, the group’s net profit for the year ended March 31 totalled $40.4 million. This represented a 184.5 per cent increase over the combined profit of Wilson Neil and Saudicorp for the 1986 year of $14.2 million, Mr Herbert said. To Increase the group’s cash base Saudicorp will sell its original 12.5 per cent shareholding in Wilson Neill subsequent to the takeover. Mr Herbert said this would reduce the need to seek further capital from shareholders for Wilson Neill’s ongoing growth plan.

As part of its growth plan, Wilson Neill recently formed a new joint venture company. Embassy Investments, Ltd, to increase its involvement in the property sector with a view to develop and invest in property in the United States and Hawaii. Wilson Neill owns 33

per cent of the new company with Howard Paterson and John Martin, former shareholders of the Excelsior group, and Dunedin-based Southcorp, Ltd.

It also plans to undertake a number of property developments through its joint venture companies, Saudi Wilkins and Davies, Ltd, and Keys Preston Maskell and Co, Ltd.

New projects include a 14 storey office, block in Wellington’s Manners Street, an office development in Porirua, and development of a site in Camp Street, Queenstown. The year under review saw the group’s first entry into offshore investment with Wilson Neill International, Ltd, established in Hong Kong. Wilson Neill bought Australian interests with 24 per cent of liquor and food group, Barwon Farmlands, Ltd, and a further interest in seafood processors and marketers, Poulos Bros Holdings (Pty), Ltd.

At the other end of the scale, the group divested smaller interests, shedding its 20 per cent holding in Wellington-based foreign exchange advisory group, Forex Consultants, Ltd, and its 15 per cent interest in Pacific Proteins, Ltd. “Although both companies were performing at a high level, the scale of operation and the size of our participation was considered too small, particularly in terms of the merged group,” Mr Herbert said. .

Following the merger of Wilson Neill and Saudicorp, the wholly owned subsidiary Saudicorp Securities, Ltd, has carried out all the group’s treasury and money market activities since March

"Saudicorp Securities will continue to provide a range of corporate financing facilities with an emphasis on the larger wholesale or more complex transactions,” Mr Herbert said. Wilson Neill has a 35 per cent interest in the country’s total production of oppossum fur and Mr Herbert said it was well positioned to take advantage of international market improvement for these items.

The group acquired Hamilton-based East Side Tavern and Hukanui Wholesale as part of its continued expansion in Auckland and the Waikato to add to its other 29 retail outlets. Mr Herbert said Wilson Neill saw the seafood industry to be one of New Zealand’s largest single export earners and has made substantial investments in catching and processing areas.

Wilson Neill directors will recommend a final dividend of 3c per 10c share at the annual general meeting on August 12.

Shareholders can take 2.5 c by way of a bonus issue and the remaining 0.5 c of the final dividend will be paid in cash.