INDEPENDENT NEWS

NZSE Unlisted Securities Market: Code WIP

Published: Wed 4 Jul 2001 11:46 AM
Widespread Portfolios Limited
NZSE Unlisted Securities Market: Code WIP
Final Result for the 12 months ended 31 March 2001
The directors of Widespread Portfolios Limited are pleased to announce that the company achieved a net tax paid profit for the year of $127,000 (last year $1,268,000). Unrealised gains at year end were $598,000 (last year; $558,000).
Net assets at year end (after allowing for tax on unrealised gains) were $2.97 million or 48 cents a share (last year; $2.121 million, 54.6 cents a share)
Clearly the reduced profit this year reflected the cyclical nature of share investing - it is often quite difficult to follow one bumper "harvest" with another and this proved to be the case despite our expectations of another outstanding result earlier in the year.
The reduction in net assets per share during the year was caused by share price falls in several of our larger holdings, and to a lesser extent the dilutionary effect of share placements and the two major issues (the 1:4 rights issue at 25 cents and the public offer at 50 cents) as well as costs associated with these issues.
Net income from sharetrading totalled $365,000 from the sale of fifteen investments including a profit of $189,000 on our Telemedia Networks shareholding.
At balance date the major investments held included Asian Mineral Resources (26.7% of the portfolio), Broadway Industries (7% of the portfolio), IT Capital (19.5%), Olympus Pacific Minerals (16.1%) and Zedex Limited (24.7%).
As at the date of this announcement Widespread's net assets at market value (net of tax) were $2.9 million (45.2 cents a share). Despite the reduction since March 31 in the market value of our major holdings we are confident in their intrinsic value and their present market status, while mildly disappointing short term, isn't really relevant to their longer term strategic value.
On a positive note our longstanding shareholding in Broadway Industries was recently sold on favourable terms. While we considered the value within Broadway justified a higher price in the longer term, the relative upside of other opportunities made it a very easy decision to move on.
Dividend & Annual General Meeting
The directors do not propose to recommend a dividend in respect of the period under review. The Annual General Meeting will be held in Wellington on Sunday 26 August, 2001
For and on behalf of the Board,
Linda J Sanders Chris D Castle
Chairman Director
Wellington, 4 July 2001

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