Wormaid Int. $85,000 loss

Press, 23 March 1988, Page 38

Wormaid Int. $85,000 loss

I I ll' NZPA-AAP J -I i Sydney; Wormaid International has reported a loss of sAust77jooo ($b|Z85,470) I for ! the six months to December 31, compared with; a ;sAustl3.l6 million <SIXIZI4.6 million) profit in ‘thje previous corresponding period.; J- j ' In its haif-yeaijlyi report, the| fire protection and security | group ■ also revealed ; an extraordinary loss ; of sAiists4.72 million! compared with a previous sAust79B;ooo loss. The losses came despite a 14.1 per cent increase in group sales’ to SAusts9B.l6 million and a 21.7% increase in other revenue to sAustl.3O million. | , In a statement accompanying! the result Wormaid said the! extraordinary loss stemmed mainly from losses and provisions for losses on

the -‘sale of non-core businesses. I ; j Recent sales by Wormaid include its stakes in Hastings Deering HDFI and Mather \ and Platt. I 11 !■ Y Wormaid I said ! SAust.6s "million in goodwill I arising from ; the purchase 6f. Sunshine! Australia Ltd! last December would be Considered tin the" results for the year ended June 30,1988. Directors said they (regard as! critical the sale of; shares injEnacon Ltd and tydrmald International (N.Z.) Ltd. Wormaid International has, subject to (shareholder approval and the agreement on a long-term continuing relationship, accepted al cash offer of 200 c a share from Allied Overseas Investments for its 49.83'per cent Holding in! Wormaid International (N.Z.}, Ltd. I

i ■ r: • ( . ’. . ( Allied:Overseas! is a Hong (Kong listed company in (which former Wormaid International chairman, Mr Ming Tee Lee has a I substantial stake. ( : | ; ( I The sales, (were to have been considered i by I shareholders at 'meetings this 'Thursday but institutional (shareholders : | have ! taken ' court action to stop the meetjings. i ll" lil ; J Shareholders were also to j have considered the issue of ; "management; performance” j shares tinder ,a management agreement with Reil Corp. But J Wbrmald International’s independent directors said yesterday that the management; i : arrangement and share option deal with Reil Corp had been dropped by mutual agreement. The Wormaid directors said they would tell the meet- I

ing set to consider the Reil Corp proposal that approvals of the notice of meeting were no longer required and accordingly need not consider the resolutions referred to In; the notice of meeting. :( | '( The 'directors added that Mr John Hiffe had been pointed to(j. the Wormaid board and will be the deputy chairman. ( In another move, Mr Robert Mansfield will remain as a Wormald director and has been ( appointed chief executive. I ! The board of directors of Wormaid International is now Messrs Phillip Cave (chairman), John Iliffe (deputy chairman)( Robert Mansfield (chief Executive), Neil Gamble (executive finance director), |Sir Laurence Muir and Sir Nicholas Shebadie. - : ! II " I I!