COMMERCIAL Hooker had record half-year profit

Press, Volume CXIII, Issue 33155, 20 February 1973, Page 16

COMMERCIAL Hooker had record half-year profit

(N.Z P .A.-Reuter —Copyright) SYDNEY, February 19. The Hooker Corporation, Ltd, Australian property group, has announced a record group net profit of $2.3m for the six months to December 31.

The profit rose by $323,000 or 16.8 per cent compared with the previous corresponding period. It was struck after providing $450,000 more for tax of sl.7m. No provision for depreciation was given. An amount of $500,000 was deducted from group operat- * ing profit—leaving s4.om for I the period— to cover “conI tingencies arising from' potential initial vacancy and consequent establishment

costs of certain office block projects, the subject of existing and proposed head leases and other interests.” An increased dividend of 6 per cent (5 per cent) has been declared for the six months. The chief general manager (Mr J. K. Campbell) said that the revaluation of the Australian dollar in December had the effect of reducing by sl.2m the company’s United States - dollar - debenture -!

t; indebtedness, and this! United States dollar > devaluation created another surplus of st.Bm, making the > total credit in the currency 5 exchange flotation account i $3.9m. This surplus had not been included in the operatr‘ing profits. t The group’s indebtedness - was SUS23m. with the right ' to repay sl9m during this ■ year. I. Although trading by most \ divisions proved satisfactory ’• during the period, the group’s, i remaining hotels, CarltonRex, Kings Cross-Rex, Can-iberra-Rex, and a half share jin the Caringbah Hotel produced results “unsatisfactory in terms of funds employed.” The company’s interest in 'the Caringbah Hotel was sold “at a small capital gain” soon after the end of the half-year 'and, said Mr Campbell. “Wei are very definitely reducing! our interest in hotels to quite ja minimum capital involve-! j ment.” , After writing off $420,000; I for estimated north Aus-i ' tralian cattle costs for the j second half, along with the' proportionate internal and ! external financial charges, “a; small deficiency” was in- ' curred by the group’s pastoral division. Mr Campbell said that the; directors believed that after|< the creation of “prudent pro-; 1 j vision for vulnerable spots in s ; the property market from 1 . time to time, an overall i growth in future profitability i ■ can continue to be expected.” t