Paladin betters profit forecast

Press, 7 October 1987, Page 41

Paladin betters profit forecast

PA Wellington New Zealand Equities subsidiary, Paladin Investments, Ltd, has bettered its prospectus forecast with a tax-paid maiden, profit of $3,444,191 for the first nine months of operation ended June 30.

The result represented a return on average shareholders’ funds of 178 per cent and earnings per ordinary share of 10.7 c, company chairman Avon Carpenter said. Directors said they were delighted with the rapid progress made in the establishment of a Hong Kong base for Paladin Investments.

In line with the prospectus, no dividend has been recommended. However, New Zealand Equities is to offer a bonus and final call to all shareholders and option holders in Paladin Investments.

This resulted from the acquisiton, shortly after Paladin listed, of a controlling interest in Hong Kong listed investment company J. F. Special Holdings Ltd, now renamed Paladin International, Ltd. Paladin International has shareholders’ funds of about SNZIOO million, and has provided the impetus from which the company has been able to develop a local management team, Mr Carpenter said. Among the shares to be

purchased are 8 million 50c shares each issued at 60c and partly paid to Ic. New Zealand Equities already holds 8 million partly paid shares in Paladin Investments.

The bonus proposal, which requires sanction of shareholders at an extraordinary general meeting has four elements:

• Approval will be sought from the Paladin Investments shareholders to the transfer of the 8 million partly paid shares from the nominee of W. J. Kitson to New Zealand Equities. • New Zealand Equities will offer the Paladin Investment shareholders and option holders all 16 million partly paid shares for 1c each. The offer to shareholders and option holders will be in the ratio of two partly paid shares for every seven ordinary shares and options held. • Paladin Investments will on the closing date of the offer make a call on the partly paid shares for the payment of 25c. The call will raise $4 million

for the company.

• Paladin Investments will then make a bonus payment of the remaining 34c of each of the partly paid shares. This will result in the shares being fully paid to 60c.

This will mean shareholders receive fully paid shares at a total cost of 26c a share.

As the present market price of the shares is 75c this proposal contains a substantial bonus element for the shareholders. Notice of the extraordinary meeting will be sent to shareholders shortly. Application will be made for the rights to be quoted on the Stock Exchange. New Zealand Equities has confirmed it will retain its 65 per cent holding in Paladin Investments.

Turnover was $16,151,000 with pre-tax profit at $7,239,000.

After a tax credit of $297,000 after tax profit was $7,536,000. Minority interest losses of $4,092,000 took the bottom line to $3,444,000.