W. Neill in profit slip

Press, 9 November 1988, Page 37

W. Neill in profit slip

Wilson Neill, the Dunedin-based diversified brewing, property, and food group, earned a total profit of $15,084,000 in the six months ended September 30, down 29.8 per cent on the previous corresponding period.

The turnover more than doubled from $83.1 million to $187.2M. The chairman, Mr Jim Valentine, said last evening that the higher turnover reflected the consolidation of Wilson Neill Australia (62 per centowned) and Embassy Investments, a holding company for Blackfields Hawaii Corporation, an Hawaian construction company. Neither subsidiaries were included in the results of the previous six months. The latest result included three months trading from Wilson Neill Australia (formerly Barwon Farmlands) after the New Zealand company increased its stake from 40 per cent to 62 per cent. The Australian company had been trading well, picking up the Cascade Brewery Company (now Cascade Group), of Tasmania, he said.

Although the reduction in profit was disappointing, the company was satisfied that the result had been achieved after the write-off of realised and unrealised losses in the listed equities portfolio, and against a background of extremely difficult trading, particularly in New Zealand. Indications were that group net profit for the second six months, as was normal for the group, would be greater than for the first half-year. The result for the full year would be similar to the result achieved in the previous financial year ($36.3M), he said. The directors said that realised and unrealised losses from the writedown to market value of the listed shares was fully taken into account in the period. The remaining listed equities held are of a strategic and long term nature and the current

aggregate market value exceeds the book value. Mr Colin Herbert, Wilson Neill’s managing director, last week received approval from the Commerce Commission to buy up to 100 per cent of Wilson Neill. He is the largest shareholder in the group. After expenses, the pretax profit was down 15.1 per cent to $20.8M. Tax took $521,000 more at $3,430,000, and minority interests took $2,313,000 ($57,000 gain previously). Equity losses amounted to $6OOO ($189,000). A steady interim dividend of 3c a share has been declared, payable on December 5, ex dividend on November 11. Because of the present unavailability of imputation tax credits to pass on to shareholders, the directors had resolved to suspend application of the bonus issue plan for the interim dividend.