Port of Lyttelton directors buy shares

By NZPA

Friday 7th March 2003

Three Lyttelton Port directors have bought shares in the company despite the prospect of a 40 percent fall in profit.

They say the move reflects their confidence in the port business, the Christchurch Press reported today.

One of them, Donald Stewart, said he felt locked out of buying shares for the last two years while the company dealt with issues such as negotiating a major coal agreement with Solid Energy, resolving a long running dispute with the container terminal unions, and trying to attract a new P&O Nedlloyd service to the port.

"There was one thing after another, and we have to make sure we're not seen as insiders," he said yesterday.

"I've always had confidence in the company."

With the major issues now resolved Mr Stewart has made up for lost time, buying 16,000 shares in Lyttelton Port Company.

Two other directors tipping the shares as a good choice by making investments themselves are chairman Barney Sundstrum and newcomer Rodger Fisher.

All three have made use of the window of opportunity that listed company directors have to trade in the shares, a six week period immediately after the interim and full year trading results are released when all information is regarded as being in the market.

Mr Stewart said he generally reinvested his director's fees back in the company. The $25,400 he spent (about $1.58 a share) reflects after-tax income over the two years. He now owns 38,000 shares.

The former Cantabrian also owns 200,000 shares in Skellmax Industries, the Auckland-based company of which he is managing director.

Mr Sundstrum has bought 10,000 shares at $1.56 a share. Chairman since late last year, he said his investment also reflected confidence in the company's earning prospects.

"There's also a good yield on them as well."

Based on last year's total dividend and the current share price, the current gross yield is above 10 percent.

The company has just announced its interim dividend is the same as last year, though that does not guarantee the full payout will match last year's.

Lyttelton's full-year bottom line profit is expected to be about $10 million, down from $16.3 million last year, including a one-off $3 million cost to settle a union dispute.

Mr Sundstrum said there had been no official move at board level for the directors to buy shares.

"There was just some informal talk at a board meeting, where a few of us declared an intention to buy."

Mr Fisher, a prominent Auckland company director who joined the board in February, bought 5000 shares at $1.58 each. Lyttelton Port shares closed at $1.53 yesterday.

Mr Sundstrum said the fact the shares had eased slightly was not an issue. "They're a long term investment".

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