Trans-Ashburton expects $7M

Press, 24 September 1987, Page 27

Trans-Ashburton expects $7M

PA Wellington Trans-Ashburton, Ltd, soon to be renamed Sound Waves Corporation, expects to make a $7 million pre-tax profit in the year to June, the chairman, Mr John Isles, told the annual meeting in Wellington yesterday.

Trans-Ashburton is buying Capital City Radio, Hauraki Enterprises and Radio I as part of a rationalisation of Brierley Investment’s private radio interests. This will be the main contributor to the forecast profits. The company will also

be buying Marmalade Video, which is jointly owned by BIL and Capital City Radio, Mr Isles told the five shareholders and five reporters who attended the meeting. He said that while the three companies being purchased were only three months into their new financial year, sales so far indicated they were continuing the steady growth they have exhibited in the past, and this was the basis for the profit forecast. Mr Isles said there would be a small profit contribution from the capital markets activities which were the sole source of income for

Trans-Ashburton in the past year. Mr Isles said support for the planned purchases and redirection of the company was strong, and the company had had a gratifying level of acceptances so far. He said the company would probably issue 7 million shares to satisfy the takeovers since most shareholders in the target companies were taking the scrip option. This will increase the company’s issued capital to 17 million shares. BIL will continue to have a majority shareholding. The meeting approved the proposed name change to Sound Waves Corporation without comment