Trans lifts sales, profit, dividend

Press, Volume CX, Issue 32430, 17 October 1970, Page 20

Trans lifts sales, profit, dividend

Trans Holdings, Ltd, the Christchurch-based tourist company, intends to increase its dividend from 6 per cent to 7 per cent, after a 23.1 per cent rise in net profit in the latest year.

This was announced yesterday, after a meeting of the board of directors. If the dividend recommendation is adopted by the annual meeting later this year it will be the second successive year that the dividend has been increased since the maiden payment in 1968. Net profit for the group, according to the preliminary announcement by the chairman (Mr J. P. Cronin) is $74,971—514,023 better than the previous year’s result. The profit was earned on a group turnover for the year of $3,719,000. Last year’s turnover was $2,003,000. The increased result was somewhat better than expected and represents an 85.7 per cent improvement in turnover.

The net profit represents a fall in the profit margin on turnover—from 3 per cent to 2 per cent. The profit represents an earning rate of 12.9 per cent on capital increased to $581,310 by this year’s 2:5 issue.

The greatly increased income, said Mr Cronin, reflected the group’s expansion into new marketing areas. As these new areas became more firmly established the group could expect an improved profit-to-sales ratio. This had been proved by results in markets opened in earlier years. Mr Cronin also said he expected the reduction in the South Pacific tour basic fare, which had been announced earlier this week, would accelerate the growth of tourism from North America, where the group is represented by Trans Tours (South Pacific) Corporation.