Bonuses by Rheem on higher profit

Press, Volume CXII, Issue 32848, 23 February 1972, Page 5

Bonuses by Rheem on higher profit

After a rise in group net profit of 51 per cent, Rheem New Zealand, Ltd, is paying a bonus dividend of 3 per cent, and making a one for four bonus issue, the directors announced yesterday.

The preliminary statement said that profit before tax for the year to December 31 was $526,752 — including nontrading income of $32,050— on which tax of $251,599 was paid. Sales were 21 per cent higher than in the previous year, and trading profit increased by 24 per cent. The non-trading income arose from a gain on defered payment of foreign currency bills, after the realignment of the international currencies.

In addition, they say, they will recommend a bonus issue of new shares in the ratio of one for four from the capitalisation of the share premium reserve, with the balance coming from retained earnings. The bonus shares would be tax free in the hands of shareholders and would not participate in the 1971 dividend.

The directors expect to be able to maintain the 12 per cent rate on the enlarged capital in the future. Entitlement to the dividends and bonus issue will be to all shareholders on the register at the close of business on March 10.

The directors will recommend a steady dividend of 12 per cent, plus a special bonus dividend of 3 per cent from 1971 profits.