Lion Nathan on target for $110M

Press, 11 May 1989, Page 25

Lion Nathan on target for $110M

PA Wellington Lion Nathan reports a net trading profit of $40,466,000 for the six months ended February 28. The result is the first since Lion Corporation and L. D. Nathan and Company merged to form the liquor and retail group, so no comparative profit figures are available. The group’s total profit — which included gains on the sale of assets, disposal of subsidiaries, and extraordinary items of $19,117,000 — was $59,583,000. The result excluded unrealised development margins and property revaluations. Goodwill of $4,502,000, arising from the acquisition of minority interests in subsidiaries, was written off against shareholders’ funds. The company’s interest bill was $50,330,000. Depreciation written off was $24,278,000. The company will pay a 5.5 c a share

(22 per cent) dividend on June 19. The dividend will not have imputation credits attached. The $121,776,000 cost of the shares in Lion Nathan which formed the group had been deducted from shareholders’ funds, Lion said in a statement. Profits earned from property development in the six months were not significant, Lion said. However, substantial realised property development profits are forecast to arise in the six months to August 31. “The merger of Lion Corporation and L. D. Nathan has provided a company with a base large enough and a structure strong enough to attract not only internationally competitive term finance but also executives of such a . calibre to enable the company to expand its business both in New Zealand and overseas,” Lion said. The directors said the company was on target to achieve the $llO million full year profit predicted in a pre-merger profile document.