Ansett accounting methods changed

Press, Volume CXII, Issue 33064, 3 November 1972, Page 7

Ansett accounting methods changed

The group net profit of Ansett Transport Industries, Ltd, for the year to July 1 rose by $916,566 or 20.6 per cent to $5,364,252 after changes in accounting procedures.

i The major changes were ; the million-dollar provision I for aircraft and engine over- | hauls declared unneessary by | Ansett during the take over battle with Thomas Nation- ' wide Transport, Ltd, and a | substantial cut in the tax ! provision. The tax provision was cut from $6,167,082 to $5,751,256 | or 51.7 per cent of pre-tax : profit, compared with last I year’s 58.1 per cent . If the same tax rate had been applied to last year’s pre-tax profits, net profit : would have been $679,247 higher at $5,126,933. The provision for depreciation was $937,357 higher at $17.0m with depreciation [of freehold buildings of i $250,000 included for the first | time. The result excludes a capital loss of $99,127 on the sale of assets, in contrast to last year’s s2.om capital I profit. The directors allocated '5485,970 to a provision for ■ drop in value of investments. A surplus of $238,921, earned from foreign exchange transactions, has been transferred to an exchange ; fluctuation reserve until the i relevant loans have been rei paid in full. Group revenue rose 10.6 per cent to s2oBm in the previous year revenue rose (17 per cent. The ordinary dividend rate : has been raised from 10 to j 15 per cent, as forecast by j diretcors during the take ; over battle. The directors say that the i passenger growth fate in the aviation division was the | lowest for 10 years. I In Ansett Airlines of AusI tralia, growth in passenger I ton miles on the competitive I services was only 4.7 per I cent, compared with growths I of 11.3 per cent and 14.3 per I [cent in the two previous ' years. I The Intrastate Aviation division, with the exception I of Airlines of New South ' Wales, all carried less traffic, j However, tonnage of air ' express freight continued to)

grow and was 17.8 per cent higher than in 1970-71. An agreement has been reached under which T.N.T. has agreed to a restriction in its voting power to 10 per cent of Ansett’s paid up ordinary capital even though T.N.T. is currently the registered holder of 23.4 per cent of the capital.