Adsteam Performance Ahead of Last Year

Adsteam Marine Ltd. is performing better than in the same period last year, but company officials said no decision has yet been made on or not to sell the firm's stake in Holyman Ltd. "Current trading after the first four months of the new financial year is ahead of the same time last year - that is revenue, earnings before interest and tax and net profit after tax," David Ryan, Adsteam's managing director, said. The company posted a net profit after abnormals of $11 million in 1998/99, up from $10.8 million on the year. Adsteam, whose $74.9 million takeover offer for Holyman was recently bettered by a $80.9 million offer from Lang Corp. Ltd., held around 23 percent of Holyman's ordinary shares and 68.3 percent of its listed options when its bid closed. "Adsteam Marine would make a net profit of A$3.6 million ($2.3 million) if it sold its Holyman shareholding into the current bid. No decision has yet been made by the Holyman board on the shareholding," Ryan said. He said the board had decided it was not in the interests of Holyman shareholders to try to acquire Adsteam "at an unacceptable level of risk over prospective returns." Newcastle operator Hunter Towage Pty Ltd., which was bought by Adsteam in June, will make a full-year contribution to Adsteam's results in 1999-00, Ryan told shareholders. "The positive effect of this acquisition should be reflected in the results of this financial year and beyond," he said. Adsteam has six new tugs currently under construction, due to be completed by June 2000.