Omnicorp $15.9M profit

Press, 26 January 1988, Page 23

Omnicorp $15.9M profit

PA Wellington Tourist operator Omnicorp Investments has reported a tax-paid profit before extraordinaries for the seven months ended October 31, 1987, of $15.9 million.

Omnicorp has changed its balance date because its two major associates, Hudson Place Investments and Jagwar Holdings, both have October 31 balance dates. The seven month result is equivalent to $27.3M annually which is an increase of 54 per cent on the previous period, the directors said yesterday. A dividend will be paid when the result has been audited. Profit before tax for the

seven month period was $8,177,000 against $18,630,000 for the year ended March 31, 1987.

There was tax credit of $994,000 against tax paid in the previous period of $897,000.

’ Operating profit after tax was therefore $9,171,000 against $17,733,000. The equity accounted share of associated companies trading profits was $6,689,000 (previous period nil).

Profit before extraordinaries was therefore $15,860,000 against $17,733,000. But extraordinary losses reduced the result by $11,314,000 (previous period nil). The write down of the investment in Strathmore Group to its net asset

backing accounts for most of the extraordinary loss, directors said.

"Omnicorp is in an extremely strong financial position with no net debt (that is cash plus debtors exceed debt plus creditors) and a large number of committed undrawn bank facilities,” financial controller, Mr S. C. Stitt said. “The result to October 31 represents the position with all listed investments written down to their market value. Omnicorp now has less than $2 million invested in listed securities apart from Strathmore Group,” he said.

“Omnicorp is taking a very conservative approach to the outlook for the world economy.

“It is likely that company valuations will continue to decline and therefore it is unlikely Omnicorp will now continue its aggressive expansion plans in ■ international tourism in the short, term,” Mr Stitt said. Omnicorp’s paid up capital at balance date consists of 225,835,478 50c ordinary shares, and 1,620,000 staff shares paid to Ic.

In addition there are 27,625,000 listed options exercisable on March 31, 1991 and 13,000,000 management options exercisable on December 31, 1990.

The audit results will be available by mid-March and the annual report will be distributed in April, the directors said.