Amuri shareholders assured of stability

Press, 8 December 1987, Page 32

Amuri shareholders assured of stability

Amur! Corporation has no stockmarket exposure, low debt, and an orderly, sustainable growth route in commercial property, says the chairman, Sir Roderick Weir. In an interim report to shareholders, he says that the Christchurch-based motor vehicle dealer, property developer, and apparel manufacturer has inherent stability, sound management and a strong balance sheet. These are timely re-

minders that the company has been in business since 1910, and it has survived other recessions and market downturns, he says. Shareholders may be assured that Amuri has the strength, people, and market position to weather the (sharemarket) events of recent weeks. The company was now implementing plans to begin a substantial expansion, both nationally and internationally.

“In pursuit of further significant growth, the focus will be upon prime international metropolitan property,” he says.

In “financial fundamentals,” Sir Roderick says that Amuri is well placed to meet the more rigorous financial demands facing share markets. • Amuri maintained excellent growth in earnings a share —12.7 c in the latest period.

• Benefits from increased market value for the Christchurch and Wellington , properties, plus substantially higher rents. The surplus on investment property revaluations is $5.8 million.

• Substantial development margins on current property projects will be accounted for at the end of specific projects. They are riot included in the accounts. • The balance sheet has been strengthened by an increase in assets from $49.2M at March 31 to $55.4M at September 30.

• Amuri has an asset backing of 87c and a “healthy” debt equity

ratio of 84 per cent • Shareholders’ funds have increased 129% in 18 months to September 30, of which 76%, or SI9M, came from profits. All divisions have traded well into the second half. The addition of the BMW brand has strengthened the motor division’s turnover and earnings. Macalister’s Apparel is performing well in the market place and providing an excellent return on Amuri’s investment. The property activities of the group have progressed strongly, and the company is poised for a bigger presence in the property market As reported, Amuri more than doubled its group net profit, before property revaluations, from $352,000 to $1,018,000 in the six months to September 30. Property revaluations were $5,830,000 ($3,104,000 previously), and minority interests $20,000 ($14,000), giving a final result of $6,828,000 ($3,442,000).