BIL International shares rise on return to annual profit

By NZPA

Monday 23rd September 2002

Singapore-based BIL International Ltd posted a net profit of $US10.4 million ($NZ22.4 million) today for the June year, compared with loss of $US119.6 million last year.

Thistle Hotels, 45.9 percent-owned by BIL, contributed $US29 million profit during the financial year as a result of the sale of 37 hotels.

Following the sale, Thistle retained about Stg1 billion in hotel assets and remained the largest hotel operator in London.

During the year BIL sold two Australian investments, Coates Hire and SPC, for returns of 74 percent and 55 percent respectively.

After balance date, BIL also sold about 6.2 million shares, at $S7.85 per share, in Singapore-based soft drinks group Fraser & Neave. That compared with an average price of $S6.09 BIL paid for the shares.

BIL said in a statement to the New Zealand Stock Exchange that it had almost halved its total debt to $US582 million from $US1.05 billion. The investment company also halved corporate overheads to $5 million.

"The 2002 financial year was about maximising value from existing investments, selling assets to reduce debt and reducing our overhead cost base," BIL chief executive Arun Amarsi said.

"Going forward, our emphasis will remain on extracting value from our existing portfolio, further reducing debt and making new value adding investments."

BIL's large loss last year was on the back of its investment in Air New Zealand, which saw its Australian unit Ansett collapse. The company wrote off $US168.2 million as a result of the airline's troubles.

BIL has seen its 30 percent stake in Air NZ diluted to about 5 percent.

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