Clouds need to be cleared away at Onfem
Onfem Holdings is a property and non-ferrous metals business which has managed to change its accounting period twice in four years, making it difficult to work out what is going on.
What is clear from the December accounts, however, is interest payments are strongly up and the quality of current assets needs to be watched. Another property deal might be needed to keep group momentum primed.
From April 1 to December 31, 1995, profit attributable was $91.58 million, against $109.8 million to the end of March 1995, up 17 per cent on 1994.
Fully diluted earnings per share on the period was flat at 34 cents, according to Wardley Data Services. Fully diluted earnings per share at December 31 was 26.76 cents.
Last year the group sold Onfem Centre in Central for $900 million and agreed to paying $415.36 million for a Wyndham Street building.
The consolidated balance sheet shows a fall in fixed assets at December 31, from $1 billion to $382 million.
There is $680 million shown for interest in associated companies, $456.86 million for properties under development and net current assets of $548 million. Net assets are shown at $1.67 billion.
Gross interest on loans, before capitalised amounts, is $117.3 million at the end of December, against $45 million at the end of March.
The operating profit of $59.75 million, up from $18 million in March, is arrived at after charging for interest payments. Net cash flow from operating activities is $33.7 million, against a loss in March of $79 million. Net cash inflow from financing activities stood at $177.78 million. Cash and cash equivalents brought forward amounts to $235.4 million.
Current assets reached $1.95 billion in December. This included stocks more than doubling to $227.7 million, debtors along with deposits and prepayments more than doubling to $698.6 million, while loans receivable were $116.6 million. There was another $521.1 million due from fellow subsidiary companies.
On the current liabilities side, the $1.4 billion total is made up of $675.95 million of debt, flat on the previous figure, a doubling in creditors and accruals to $452.8 million and $231 million due to the ultimate holding company or a fellow subsidiary.