Mut. Pae doubts $4M forecast

Press, 13 April 1988, Page 39

Mut. Pae doubts $4M forecast

Mutual Pacific Corporation is unlikely to achieve the S 4 million profit it I forecast for the year end-; ing June 30, the company: says in its interim report.’ iThe chairman, Mr (Jim I Wakefield, says that: despite difficult trading' conditions the company; will have a satisfactory: year, but the forecast,' made at the annual gen-: eral meeting on Septem- 1 ber 30 is .unlikely to be met. “It is a matter of record that the current volatility of the sharemarket has impacted on the company’s share price and created economic uncer-' tainty in the marketplace generally," Mr Wakefield says. "In fact, the current downturn has caused your directors to shelve plans for a share placement and cash issue to shareholders until more predictable and certain business conditions prevail.” Mr Wakefield says that this will to some extent

I' . I impinge on; Mutual .Pacific’s expansion and! thus on its financial performance for the year, j On a brighter note, the acquisition : and expansion programme that I Mutual Pacific has undertaken during the past: six months, together | with a strong cash-flow position, give the company! a sound foundation: for development. J: These acquisitions have included the purchase of Mutual Leasing) :which, trading as Avis Car Leasing, offers a range of vehicle lease options. Of equal concern to the company is the uncertainty in the business community, "caused by the various changes in Government policy with respect to taxation and economic! policy matters.” , "Even though .interest rates have shown some downtrend recently, the continuing strength of the New Zealand dollar makes business conditions difficult." Mr Wakefield says. Since balance date, the j company has bought all the shares in j Mutual| Finance, which provides! consumer finance to | group customers.)

' In August, 1987, the Kompany made an offer i for) all the shares in \nitec Holdings which it lidj not already own. The iffer was successful and (the Christchurch-based investment company is now fuljly owned. An associate company of | Mutual Pacific, Buller Industrial Investments, a small profit on its operations for the six months. However, the market value of the investments which it holds in! listed public companies declined from a cost of 811,627,731 to a market value of $987,618 at December 31.

|“This investment is held primarily as a long-term investment and therefore market fluctuations do not immediately impact upon tlie company’s operations,” Mr Wakefield says. I I As previously reported. Mutual Pacific increased its interim profit to B]T, 234.811 for the six months ended December 3(1 (previous interim 8963,564). I This was on turnover that rocketed from $4,497,982 to 816,176,251.

A dividend of 2.5 c a ;hare. payable on April 10. has been approved.