I.C.I.A.N.Z. PROFIT UP

Press, Volume CIV, Issue 30919, 27 November 1965, Page 22

I.C.I.A.N.Z. PROFIT UP

New Peak Of £5,296,000 (N.Z. Press Assn.—Copyright) MELBOURNE, Nov. 26. Imperial Chemical Industries of Australia and New Zealand lifted group profit from £4,773,000 to a new peak of £5,296,000 in the year to September 30. But a bigger proportion of the year’s earnings was applicable to minority shareholders. Their portion rose from £236.000 to £690,000. leaving £4.606,000 for 1.C.1.A.N.Z. shareholders, compared with £4.537,000 last year. Today’s results came from sales up from £82,908.000 to a new record level of £112,015,000. . Profit was after a leap in depreciation from £3.653.000 to £5.765,000. It was after tax raised from £2,083,000 to £2,539,000 which partly reflected lower investment allowance of £595,000. compared with £760,000 last year. Ordinary dividend is maintained at 71 per cent for the year, but is payable in a slightly different manner. Subsidiaries Directors say that sales and profit for the year include the results of newly acquired subsidiaries. These are Australian Fertilisers, Ltd., and its main subsidiary, A.C.F. and Shirleys Fertilisers, Ltd.. Colonial Ammunition Company, Ltd., and Fibremakers, Ltd., and results are included for the period since acquisition. Comparative figure for 1964 included an additional three months trading by the B.A.L.M. group. Directors say the increase in depreciation was largely because of the inclusion of the provisions of these subsidiaries. They calculate that the profit after allowing for the preference dividend was equivalent to an earning rate of 11.1 per cent on the average ordinary paid up capital of £40.977,000. This compared with 12.9 per cent on average capital of £34,748,000 last year. Directors say they intended to recommend an unchanged final dividend of 41 per cent, but at the request of the major shareholder, 1.C.1., Ltd., of Britain, and because of the special circumstances of that country’s tax legislation, it had been decided to pay a second interim dividend of 3} per cent as soon after December 28 as possible, followed by a final 1 per cent on March 1, which will be recommended to shareholders at the annual meeting on February 25.