McKechnie Brothers in strong position
PA Wellington The “Black Tuesday” sharemarket collapse underlined the strengths of firms such as McKechnie Brothers (N.Z.), Ltd, company chairman Sir Roderick Weir told shareholders at the annual meeting in Wellington. He said the New Ply-mouth-based engineering firm was in a strong financial position to consider acquisitions and could even benefit from the sharemarket plunge. “We do not see the stock market crash as detrimental to these activities,” he said.
But, he emphasised the importance of the company’s manufacturing activities. While its shares could be seen as undervalued, he told shareholders, McKechnie Brothers shares had weathered the price drop well compared with such market leaders as Brierley Investments. However, inflation and high interest rates and a strong New Zealand dollar had taken their toll on the New Zealand operation. “One cannot help expressing disappointment at the level of inflation and the high interest rates experienced during the
year and still to see the ' value of the New Zealand high dollar increasing against the currencies of our tradin partners,” Sir Roderick said in his report. The continued development of CER and the removal of trade barriers between Australia and New Zealand meant McKechnie Brothers was looking towards the prospect of an Australasian marketplace. The company’s Australian operation had been restructured “and a well motivated management team” had. taken over. The company was be-
ginning to export products made in Australia where the value of the exchange rate was more favourable, he said. Shareholders approved the re-election of directors J. M. Butler, N. Moller, and M. Ost as well as an increase in directors’ fees from $25,000 to $lOO,OOO per annum. Shareholders also approved a final dividend of 6.5 c a share bringing the total dividend to 13cps as well as a bonus one for five share issue in lieu of the final dividend. McKechnie Brothers reported a record tax paid profit for the year ended July 31 of $8,103,000,
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Press, 30 November 1987, Page 38
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323McKechnie Brothers in strong position Press, 30 November 1987, Page 38
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