Stevens KMS has $7.5M loss

Press, 29 December 1988, Page 20

Stevens KMS has $7.5M loss

Stevens KMS Corporation plans to concentrate on its pharmaceutical business after incurring a $7,558,000 total loss in the six months ended September 30. The Auckland company’s total profit in the previous corresponding period was $1,533,000. The chairman, Mr E. B. Allison, said that the latest result reflected the extremely difficult trading incurred in the company’s main markets in 1988.

In addition, “relatively” high debt coupled with high interest rates had contained profits. “These factors are continu-

ing to affect results in the second half.” No dividend has been declared, compared with a 5c a share (5%) interim payout

previously. Besides concentrating on its pharmaceutical business the company was starting an asset-selling programme to reduce debt and restore profitability. Management changes are also being made, Mr Allison said. The effect of these changes would be shown this financial year. Turnover increased 12.7 per cent to $86.1 million, but the company incurred a pretax loss of $3,844,000

($1,464,000 profit previously) after expenses. Income tax took $282,000 ($97,000 credit). Minority interests took $49,000 ($37,000 addition), and there were no equity earnings ($236,000). Extraordinary losses of $3,383,000 ($33,000) came from the sale of the company’s stake in OHL Corporation and from a provision for a reduction in the current account with Stevens KMS Properties. Zuellig Group, of Switzerland, controls about 59 per cent of Stevens KMS Corporation’s capital.