Shortfall in Skeggs earnings for year

Press, 24 September 1987, Page 27

Shortfall in Skeggs earnings for year

PA Wellington Skeggs Corp’s earnings for the year ended June 30 came in under forecast at 18.706.000. The profit, including $475,000 in extraordinary gains, compares with a forecast of $9,100,000 for the year. Reporting the unaudited result yesterday, Skeggs' directors said since the forecast was made, in March, trading conditions in some areas had deteriorated. In light of that, they were satisfied with

the result. The fishing and fish processing company, with diversifications into transport, engineering and investment, went public in May with a $2O million float of 25 per cent of its capital. In the year, turnover was $78,712,000, profit before tax was $14,211,000, and taxation was $6,012,000. The company had minority interests of $32,000, lifting earnings before extraordinaries to $8,231,000.

In line with previous statements, the directors said no dividend would be paid. Their report provided no comparison with the previous year but did show profitability in the second half ended June 30 was less than in the first half. The second half contribution was $3,349,000, after an extraordinary reduction of $lOO,OOO. The period reflected the restructuring of Skeggs be-

fore the public share issue. Turnover in the half, at $42,093,000, surpassed the first six months. However, the profit on that was down to $5,869,000 before a tax liability of $2,456,000. To net second half earnings of $3,413,000 were added minority interests of $36,000. Those substantially offset a loss in this area in the first half.