Argus loses $19.9M

Press, 1 December 1988, Page 24

Argus loses $19.9M

The directors of Argus Questar Corporation yesterday announced an after-tax loss for the year ended July 31 of $11.5M. Extraordinary items comprising writedowns and provisions against nontrading activites amount to $7.7M and increased the total oss for the year to $19.9M. The directors said the result was disappointing and reflected the severity of the downturn in the property development market, Argus’s primary business sector, and the marine industry. Both of these areas of operation were hard hit by the economic decline following the stock market crash and vacillating Government fiscal policies.

Argus Questar has been endeavouring to dispose of assets for a considerable period and in the current year has disposed of property investments and developments valued at more than S9OM. Currently negotiations are proceeding for the sale of a property portfolio totalling some SSOM and other assets of S3OM. The adverse economic climate has continued since year end, the directors said, and the outlook for the property sector (in particular) remained uncertain. The board was committed to the need to reduce assets and improve liquidity although it was unlikely that Argus

would return to profitability for the year ending July 31, 1989. No dividend will be paid for the year. Turnover totalled $213,277,000 against $41,637,000 the previous period. The $19,912,000 loss after extraordinaries this year compares to a $5,100,000 profit the year before.