‘Capital markets will continue to grow’

Press, 28 July 1987, Page 26

‘Capital markets will continue to grow’

The directors are confident that Capital Markets, Ltd, will continue to grow this year, says the joint chief executive, Mr David Richwhite, in the annual report. Further opportunities would exist for the company as New Zealand’s legislative and market forces moved in line with the rest of the world. Because of its low gearing and expanding international involvement, Capital Markets would continue to grow in the securities business. The main area of business remained long-term securities. The emphasis on making a long-term

platform of maintainable earnings during the first year’s trading had created the beginning for future results. A number of completed transactions have residual profits locked in for coming years, he said. As reported, the group net profit was $32,794,803 in the year to March 31, compared, with $978,585 in the previous corresponding period. Included in the result were equity earnings of $2,436,693 (nil) and an unrealised gain on revaluing negotiable securities of $98,972 ($500,502 loss). There were also preliminary and share issue expenses of $46,052

($101,726). Gross income totalled $59,5M ($10.7M), including interest on Government stock of $19.1M (S7.BM). The profit was after providing S2M more for tax at $2.6M. A final dividend of 7.5 c a share gives an annual rate of 10c a share (40 per cent). The dividend requirement is $9,364,276 and it is covered 3.5 times by the profit. Shareholders’ funds jumped $30.5M to $92.1M, including ordinary capital Up $166,258 to 531.2 M after placements and the bonus share in lieu of dividend scheme.