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Annual Report to
Shareholders 1998
1 - From the
Chairman
J.B. Fairfax AM
Due to the dedication and skill of our management and
staff, Rural Press has been able to retain its membership of
an elite group of listed companies; it has continued its
record of increasing annual profits over an extended period,
in what many would regard as another challenging year. It
has been challenging because of low commodity prices,
uncertainty hanging over various Asian economies, unsettled
political environment and a general lack of confidence in
regional and rural Australia.
It is with some relief that I am also able to report, for
the first time in many years, Australia, and particularly
eastern Australia, enjoyed a reduced exposure to the El
Nino-induced drought.
The purchase of the Farm Progress group of agricultural
publications in the USA in September 1997 has proven to be a
sound acquisition in every respect. It not only gave us
leadership in a market experiencing prosperity and growth,
it established Rural Press as a leading agricultural
publishing company world-wide.
In October 1997 we disposed of our Broadcasting Division.
The remaining radio operations involve a small network of
radio stations in regional South Australia, with an
agreement to purchase an FM station in Ipswich,
Queensland.
The theme of our annual report this year is to highlight
our great depth of information and news gathering in our
multitude of publications. While international events crowd
the pages of the metropolitan newspapers and the evening
television screens, the majority of our publications record
the events and cover the issues that directly affect the
daily lives of their readers and their local
communities.
For many years we have reported the cutbacks and
withdrawals of services to regional Australia. This has
culminated, not surprisingly, in a backlash from these
communities. Unfortunately, the voice they are supporting
has attracted elements in our midst that expose some
disturbingly divisive messages with potential to damage the
fabric of our tolerant society.
The shift in rural and regional economic viability
emphasises the importance of our various media outlets. We
have a duty to serve our communities and allow the freedom
of speech that has generally typified the open nature of
Australia and its people. Our editors and journalists must
report what is happening in an impartial and unbiased way,
and our commentary must be based on sound judgement and
logical argument.
This past year has been a country journalist's delight.
The issues that have surfaced as a result of new
agricultural policies and the emergence of One Nation as
more than just a small prick in the side of rural Australia,
has provided many paragraphs of copy to serve a readership
and audience that for many years has felt oppressed,
neglected and badly treated.
You have a committed team across all of our activities
and it would be very remiss of me not to convey my
appreciation to all staff for a particularly good result.
The proposed new share plans, which are outlined in this
report and in the notice of annual general meeting, reflect
the Board's wish to encourage even greater employee share
ownership, thereby enabling staff to further share in the
growth of the company emanating from good results such as
these.
Shareholders would be pleased by the proposed special
dividend, which is subject to shareholder approval of a
dividend re-investment plan on this proposed special
dividend. The plan enables members to re-invest all or part
of their special dividend as proposed in shares of the same
class; the re-investment will assist the company in funding
its continued expansion in the future.
I believe that the results for the year reflect that we
are fulfilling our obligations. We shall always try to do
better - better for our readers, for our listeners, for our
advertisers, for our employees and for our shareholders. We
shall continue to take advantage of growth opportunities in
Australia and overseas.
J.B. Fairfax AM,
Chairman of Directors
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