Owens board throws out the crystal ball

By CHRIS DANIELS

Owens Group shareholders have been warned of troubling times.

At their annual meeting in Auckland yesterday, shareholders were told of a "satisfactory" previous year, but also of looming uncertainty.

The transport and logistics operator last month reported a $3.3 million full-year profit, down 29 per cent on the previous year.

The company said its operating profit after tax and before abnormals of $4.8 million for the year to March 31 was in line with a forecast issued in March. Last year's equivalent figure was $4.9 million.

Its result came despite a 16.5 per cent rise in sales revenue to $446 million.

Chairman Norman Geary issued a warning to shareholders about the increasingly unclear prospects for the New Zealand and world economies.

"Locally, the New Zealand economy is slowing markedly and has been doing so for several months, although the slowdown varies from one sector to another," he said.

Given "the most unusual uncertainties" in the commercial world today, it was not possible to forecast results for the first half and full year for Owens, said Geary.

"It is, however, clear at this point that with the slowing New Zealand economy our results for the first six months of the current financial year will fall short of the comparable result last year, which was a particularly strong period."

Owens directors were quizzed on their fees during the past year, which in two cases also included money for consulting work.

Owens directors were last year paid fees of $285,000. In addition, Geary received consulting fees of $70,000, fellow director Kerry McDonald a consulting fee of $33,000, and two directors received retirement allowances of $90,000 each and another of $30,000.

Geary's fee was for his role as acting chief executive between January and October last year.

McDonald received his extra fees as a member of the group's Australian advisory board.

Answering a shareholder's question, Geary defended the payment to McDonald, saying the fees were approved by the rest of the board, which was satisfied they were fair.