Paynter takes remaining dose

Press, 28 July 1989, Page 14

Paynter takes remaining dose

Paynter Corporation took the remaining medicine for its unfortunate foray into development with its interim profit for the six months ended April 6. The company reported a loss of $1,642 million, compared with a profit of $615,000 for the previous comparative half-year. Turnover was 14.5 per cent up at $44.792M, but this was outweighed by expenses' of $45.656M. The loss was added to by a $1.062M doubtful debt. An extraordinary gain of $284,000 decreased the bottom-line loss. The product which choked Paynter corporation was Clarendon Tower. Interest costs for the 17-storey building began hurting Paynf-.r Corporation in the first half of last year. It was not sold until November. In the latest result, the doubtful debt arises from

money owed to Paynter by D. R. and J. R. French, Ltd, which went into receivership in May. It ran a bar and two restaurants in the Clarendon. In the current half of the financial year, Paynter Corporation will have a sizeable inflow of cash in mid-Octo-ber, when settlement of $33.5M for the construction of Robt Jones House will eliminate Paynter’s short-term debt of S2SM. Paynter has negotiated the sale of its half share in the time-share tourist project at Wanaka. Thus, it will soon be shrunk completely to a buildingmaterials supplier with timber interests in New Zealand and Australia. Cardrona Ski Area in March bought the 25% stake in Paynter Corporation formerly held by Wellesley Resources.

Paynter Corporation: Balance Sheet at April 6 1989 1988 Current assets ($000) ($000) Debtors, advances, deposits 17,364 15,909 Stock 15,308 12,478 Development, construction in progress 29,123 50,834 61,795 79,221 Fixed assets 5,792 7,568 Investments —— 12,425 Goodwill 1,733 — Total assets . 69,320 99,214 Current liabilities Creditors and Bank overdraft 13,900 17,497 Taxation 222 116 Short-term loans 25,185 43,081 39,307 60,693 Deferred taxation 1,321 2,296 Term liabilities. . ; 7,212 896 Total liabilities 47,840 63,885 Excess of assets over liabilities . . . . 21,480 35,329 Shareholders’ Funds Issued capital . 12,055 11,921 Other reserves 10,566 11,297 Retained profits (1,141) 6,429 Minority interest — 5,682 21,480 35,329