COMMERCIAL D.B. 1:5 Bonus; Cash Issue To Follow

Press, Volume CX, Issue 32352, 18 July 1970, Page 18

COMMERCIAL D.B. 1:5 Bonus; Cash Issue To Follow

(New Zealand Press Association) AUCKLAND, July 17. Dominion Breweries, Ltd, today announced a one for five tax-free bonus issue, and plans for a one for six cash issue.

A consolidated net profit of $2,272,590 was recorded by the company for the year to March 31—an increase of $766,572 over last year’s result.

The company announcement says that $543,390 of the latest profit figure represents post-acquisition earnings of 11 subsidiary companies acquired during the year at considerable cost, which does not form part of the parent company’s earnings. The over-all result repre-

sents a return of 10.4 per cent on shareholders’ funds at balance date. A final dividend of 7 per cent is recommended on preference and ordinary share capital, which at balance date amounted to $7,431,416. This makes an unchanged total ordinary dividend of 124 per cent for the year. The announcement says that the recommended one for five tax-free bonus issue is being made to mark the company’s fortieth anniversary. It will be funded from the share premium account. Entitlements will be calculated on shareholdings at noon on August 7, the day of the annual meeting. “This will be followed as soon as practicable,” says the announcement, “by a one for six cash issue calculated on the increased capital, on terms to be announced. The proceeds will be applied in part in meeting the cost of the extensive capital development programme in which the company is engaged. “Having regard to future earnings from such investments and contributions to earnings by the recentlyacquired subsidiaries," the statement adds, “the directors

see no reason why the dividend rate should not be sustained on the increased capital.” , Transfer books wjll be closed from July 29 to August 7: the final dividend is payable on August 7. In the latest 18 months the Company has strongly expanded southward from its Auckland base. A number ‘of smaller breweries, and some wine and spirits merchant were taken over in 11 major deals. The company also bought a large number of major hotels in the South Island.