Pope Ind. Passes Interim Dividend

Press, Volume C, Issue 29487, 13 April 1961, Page 21

Pope Ind. Passes Interim Dividend

(N.Z.P.A.-Reuter—Copyright)

MELBOURNE, April 12. Pope Industries, Ltd., home appliance and television set maker, is trading unprofitably and will not pay an interim dividend for the halfyear to December 31 following a severe downturn of sales subsequent to the November “credit squeeze.” Announcing this yesterday, directors said that a "condition ot unprofitable operations” had been induced in the current year. This was a result of a decrease in production to achieve a reduction in stocks and to lessen dependence on borrowed money. Production was being geared to lower levels, but excessive costs were being incurred during the period necessary for these adjust-

ments. Since December the company’s dependence on borrowed funds had been reduced by more than £1 million and efficiency and profitability had temporarily become subservient to liquidity. Ordinary dividend for 1959-60 was 10 per cent in two equal payments of 5 per cent In spite of low sales levels within the industry, the trade’s support of the company’s policy of price stability was an encouraging sign for an upturn when improvement occurred in the country’s economy, directors state. The usual half-yearly 3 per cent and 3J per cent on preference dividends will be paid.