Radio Avon bid recommended

Press, 16 August 1988, Page 24

Radio Avon bid recommended

Radio Avon, which yesterday recommended an increased offer of 175 c a share from Sound-Waves Corporation, a Brierley Investments subsidiary, has cash reserves of $680,000. Avon’s chairman, Mr Robert Stewart, said in the company’s annual report that the directors believed these reserves should be maintained and increased to take advantages of changes “we believe will occur within the broadcasting industry ...” The private radio com-

pany would be in a good position if the Government deregulated the industry as it had signalled and offers some of its stations for sale.

If deregulation occurred then Radio Avon’s broadcasting warrant would become valuable if the Australian example was anything to go by, he said.

Sound-Waves had offered 160 c a share for all the shares it did not own in Avon on August 5. Avon’s directors said then that they would make a recommendation within a fortnight. As reported, the total profit fell 15.8 per cent to $278,941 in the year to March 31, but only after extraordinary gains of $314,604 were included in the previous corresponding period. There were no extraordinary items in the latest year. Total income jumped 32.2% to $2.7 million, and expenses rose 14.6% to $2.3M. Tax took $103,273 (nil previously). A recommended annual dividend of 7.5 c a share (30%) requires $50,960 and is covered 5.5 times by the profit.

Shareholders’ funds improved $196,909 to $1,098,190,