FAR reduces loss

Press, 22 August 1989, Page 26

FAR reduces loss

Finance and Resources, the Wellington-based investment and resources groups is reducing its shareholders’ funds to $3 million, which will include the write-down of the company’s association with a variety of less than successful activities, such as wet fish and crayfish processing and exporting, applications of technology, financial services and Queenstown property, the company said. In its preliminary statement for the year ended March 31, 1989, FAR reported a reduced loss of $7.048M, compared to a loss of $9.225M in the previous year.

This loss came from a far smaller annual turnover of $2.85M, compared to a turnover of $16.606M the previous year. FAR’s loss on extraordinary

items for the last financial year, of 54.64 M, was attributed to write-offs of various loans and investments.

In refocusing its entire operation on the beef processing and exporting industry, FAR proposes to change its name to Beef City Holdings. The managing director of FAR, Mr lan Smith, said the move to beef would place the company in a strong position for

earnings and dividend for the first full operating year of the plant (199091) and thereafter. (FAR paid no dividend for the last financial year.) Given the high return expected on shareholders’ funds from the • beef operation, shareholders were likely to see a significant appreciation in the value of their stock, as opposed to the depreciation of the past, Mr Smith said.

Finance and Resources preliminary result, year ended March 31 1989 $000 2,852 1988 $000 16,606 (4,640) (7,020) (170) Loss after tax (4,640) (7,190) Minority interests — 731 Equity share of losses of' associated companies — (914) Loss before extraordinary items (4,640) (7,373) Extraordinary items (2,408) (1,852) Loss (7,048) (9,225)