IFC expects big rise

Press, 29 July 1987, Page 39

IFC expects big rise

PA Wellington Investment Finance Corp, Ltd, has now implemented strategies to provide a firm base for future profit growth, with another substantial earnings rise on the way this year, shareholders heard yesterday. An address by the company’s managing director, Mr Neil Woodhams, said a number of deals had been launched to ensure this year’s target was achieved. Mr Woodhams said the float of Environ Corp, Ltd, had been a success, while orders for its plant had been placed in Japan and extensive activities in New Zealand to support the company’s new rubbish recycling and disposal system were well under way. IFC was confident of Environ’s success with an initial plant in Auckland, which would be a forerunner for others in New

Zealand and Australia, he said. IFC and Landmark Corp, Ltd, had now achieved a large investment in Kimberley Securities, Ltd, of Australia, which would provide IFC with an investment banking thrust across the Tasman. Mr Woodhams said IFC had now clearly identified the businesses it wanted to make a long term commitment in and continued to divest investments which do not fit. “We have put considerable emphasis on developing those business activities which provide for sound above average sustainable future earnings,” he told the meeting. IFC expected to announce shortly further major developments in its Lifecare interests, which would have a significant impact on the direction the company took in that industry, which was ex-

pected to make an increasing profit contribution in future. IFC had just completed arrangements for a subsidiary company in Hong Kong to invest into South East Asia in the long term, Mr Woodhams said. "We have made the move now to gain a strategic toehold in this vital and rapidly growing area.” The company reported a 400 per cent rise in taxpaid profit in 1986-87. Shareholders’ funds rose 80 per cent to about $31.5 million and the return on average shareholders’ funds rose from 5 per cent to 23 per cent. IFC’s chairman, Mr David Ross, predicted a further expansion of the company’s capital base “in the next few years.” “The world is full of opportunities, but we are limited by our financial resources and our man power,” he said.