European Investments maiden $13.5M profit

Press, 16 September 1987, Page 37

European Investments maiden $13.5M profit

European Investments SA has reported a maiden net profit of $U58.478 million ($NZ13.565M) for the six months ended June 30. When combined with the SUSI.B3SM ($NZ2.936M) profit for the period ended December 31, the first seven months profit climbs to SUSIO.3I3M ($16.50M). Directors said this exceeded the December 1986 profit forecast by $U5313,000 ($500,000). The result represented a 32 per cent after tax return on an annualised basis on average shareholders’ funds, directors said. They have declared a 5 per cent interim dividend of USIOc (NZl6c a share) to be paid on December 8 after the company’s annual meeting on December 1. The first six months of the year have seen EPI and its principal subsidiaries become fully operational. Offices in Hong Kong and New Zealand have been established to com-

plement those already existing in the Cook Islands and Australia. Planning is in the advanced stages to establish further presences in Europe with the opening of a London office. The company has three main areas of operation. The most established is trust and corporate management as a result of the acquisition by EPI, at its formation, of 100 per cent of Cook Islands Trust Corp, Ltd. This business had expanded during the period and produced a strong and regular profit result, directors said. The Cook Islands is the base of the trust operation which has already expanded into Hong Kong, Australia and New Zealand. Ultimately the company intends to have a global network of trust operations situated in a number of different jurisdictions so as to offer clients complete flexibility in managing their business. The second area of

operation is financial banking through European Pacific Banking Corp. The bank acts in close liaison with the trust operations and also generates significant profits through the use of EPl’s capital and balance sheet strength. The bank operates the only retail banking operation in the Cook Islands and, along with the trust operation, is one of the largest employers in the country. . The investment activities of the group have also developed during the period through Glynhill International, Ltd, a Hong Kong listed company. Glynhill had made significant strides over the past four months in its development as a specialised investment company focusing on the Western Pacific rim, especially Asia, directors said. The advances this company had made would be reflected in the full yeaf result to December, 1987, they said.