Ceres keeps salmon farm

Press, 22 November 1989, Page 37

Ceres keeps salmon farm

PA Wellington Ceres Pacific is keeping the salmon fanner, Big Glory Seafoods, after failing to find a buyer at an acceptable price following an international tender.

The subsidiary is profitable, despite contributing to a $6,506,006 extraordinary loss for Ceres in the year to September 30, following an algae bloom in Big Glory Bay that saw its rival, N.Z. Salmon, lose money last year. The losses, which included losses on the liquidation of Energy Source Television and write-downs in the value of non-performing assets, underlined Ceres Pacific's trading losses in the year. On a turnover of $18356,900 ($18,100300 in 1088) and following abnormal costs of $1,050,000 (nil), Ceres posted a loss of $3,101,000 before tax ($2385,000). The abnormal items

were a $1 million increase in the provision 'of doubtful debts in the finance group, and Ceres’ write off of $659,000 in goodwill on the purchase of Moller Johnson Finance. Ceres said Moller Johnson and Big Glory operated profitably during the year. But the S3M loss, and the S6M extraordinary loss saw the Ceres bottom line at $9,697,000 ($12320,000 in 1988). Shareholders’ funds dropped 57 per cent to $7364,000, while total assets were down 26 per cent at $24,196,000. Current liabilities grew from $15,767,000 to $16332,000, while current assets fell from $6,174,000 to $5399,000. Net tangible asset backing stood at 21.8 c a share.

Net cash flows from operations were $1,196,000, while investments took $260,000 net cash and financing took $2,460,000.