Allegra profit drops

Press, 27 September 1988, Page 28

Allegra profit drops

PA Wellington Bloodstock company, Allegra Corp, has announced a profit for the year ended June 30 of $528,000 compared with a profit of $3,010,000 for the previous corresponding period. The result was achieved on turnover of $11,462 million ($14,012 million) and included $61,000 in tax credit. The directors said all the profit was derived from trading operations. Shareholder funds were maintained at $15,205 million, with net asset

backing at $1.28 a share. No final dividend was recommended. An aggregate decrease in value below original cost for individual horses of $132,000 was included in the income statement. There was also an aggregate net reduction in the bloodstock revaluation reserve of $772,000. Bloodstock trading had become more difficult since October, 1987, and yearling sales receipts in the JanuaryMarch period had fallen short of expectations, directors said. Earnings were affected by group interest

charges of $2,742 million and were further reduced by the writing down of some bloodstock and other assets and restructuring costs. The earnings contribution of Allegra Investments for the six months ended June 30, $140,000, was substantially below management forecasts. Directors said Wellington businessmen Mr Roger Gaskell and Mr ■ Malcolm Small, who through Steed Holdings, Ltd, now held about 50 per cent of Allegra’s share capital, had been appointed to the Allegra board.