China stake offers Scales supermarket pipeline
Christchurch-based apple exporter Scales Corporation has produced another record crop and annual profit of $38.6 million.
Most of the increase was due to a higher percentage of quality crop for export from the 2016 harvest.
A recent 15 per cent shareholding in Scales bought by stateowned China Resources will provide new sales outlets because that company owns two supermarket chains in China, chief executive Andy Borland said.
China Resources and its chief executive, Wang Weiyong, who was recently appointed to the Scales board, had indicated the company was happy to remain with its 15 per cent stake, Borland said.
Borland, who has been with the company since 2007, said the company was now far more diversified than a few years ago.
Scales was formerly part of the collapsed South Canterbury Finance group and sold out of its receivership in 2011 for $44 million, but today its shares are collectively worth $484m.
Borland said the Scales investment in the Meteor pet food business, Longview orchard company in Hawkes Bay, and 73 per cent shareholding in the Fern Ridge marketing company had complemented the traditional Scales apple growing, coldstore and exporting activities.
He was uncertain if Scales would repeat this year’s performance because the last harvest had been so exceptional.
A new apple variety called Dazzle held promise for Scales and would be in full production in about three years, Borland said.
However Scales would benefit from the royalties it would glean from overseas growers in the US, Italy, France and China.
Apple exports were up 12 percent to 3.55 million cartons TCES, and Meteor sales were ahead 14 per cent.
The after-tax annual profit of of $38.6m was 6 per cent ahead of 2015, with a final dividend struck of 14.5 cents a share. The gross dividend yield was 5.7 per cent.
Scales was founded 105 years ago as a shipping business. Today it employs more than 600 people in horticulture, logistics and food businesses. A hair and beauty products firm owned by a man who ran what is thought to be a significant ponzi scheme is looking for a new owner.
Christchurch-based Boutique Hair & Beauty was last week tipped into receivership.
Its majority owner, Paul Clifford Hibbs, was last year named as being under investigation by the Serious Fraud Office (SFO) and Financial Markets Authority (FMA), relating to another of his companies, Hansa.
The SFO and FMA have not provided further details, but last September investor John Docherty and his wife claimed they had been left stranded after allegedly being swindled out of $650,000. Multiple sources have since said Hansa investors have been told at least $20 million was missing.
The receiver for Boutique Hair & Beauty, PWC partner Malcolm Hollis, said the receivership was on Hibbs’ request following discussions he had had with one of the main banks.
Financing statements showed ANZ had held a security agreement with Hibbs relating to the business since 2007.
Hollis said the receivership was not because of a business failure but because of an issue with its ownership.
‘‘It’s pretty self-evident in terms of Mr Hibbs’ current situation. He’s got wider issues to deal with.’’
The business, which had 16 staff, would continue to run and Hollis said was fairly confident he would find a buyer. –Fairfax NZ