Prorada loss of $8.2M

Press, 25 January 1989, Page 25

Prorada loss of $8.2M

PA Wellington Prorada Properties has reported a loss of $8,246,000 for the six months ended September 30. The loss compares with a profit of $3,952,000 for the same period last year. An extraordinary item of $9,200,000 was the main contributor to the loss. This comprised a $7,150,000 writedown in assets and a $2,050,000 share of an extraordinary loss by 36 per cent owned General Properties. The loss was on turnover which increased to $7,502,000 ($5,391,000), while pre-tax profit was $3,821,000 ($3,209,000).

Prorada said in a statement that the Rada group of companies owed it $42,814,000 at September 30. “These loans bear interest at commercial rates, are repayable on demand and are secured by a deed mortgage over 10,536,823 Elders Resources-NZFP shares with a market value of $37,932,000 at September 30,” Prorada said. Prorada said it had written down its investment in General Properties by $7,587,000 to $13,455,000. This reflected General Properties asset backing of 83c a share, Prorada said. General Properties shares were valued on the sharemarket at only 45c each in September, but Prorada said such a value did not represent the realisable net tangible asset value or the strategic nature of its investment in the company. At balance date the company had working capital of $62,896,000, net assets of $84,169,000 and a long-term debt to equity ratio of 0.08 to 1. “Accordingly the company is in an excellent position to significantly increase its development and investment activity in the future,” the statement said.