Industrial Equity pays higher interim

Press, Volume CXIII, Issue 33193, 5 April 1973, Page 16

Industrial Equity pays higher interim

Industrial Equity, Ltd, the Australian company raider controlled by R. A. Brierley Investments, Ltd, of New Zealand, has effectively raised its interim payment to shareholders for the six months to December 31.

The directors announced i yesterday that last year’s interim dividend rate of per cent would be maintained on capital increased by a one-for-four bonus issue, and a one-for-five premium' issue. The capital of the company has been increased by 8617,500 as a result of the issues. All the new shares will participate in the dividend although both issues took place after December 31. the managing director (Mr R. J. Blackburn) said yesterday. However, he would not say whether or not last year’s annual dividend payout of 15 per cent would be maintained for the current year. The directors have not provided any percentage move-, ments for sales or profit in’ their interim report. Mr Blackburn said yesterday he was aware that the movements were required under stock exchange regulations. “They would be inappropriate for our type of operations,” he said. The directors say that since June 30, the company and its subsidiaries have undergone a period of consolidation which has resulted in a considerable reduction in short term indebtedness and the elimination of various unsatisfactorv trading activities.

This has placed the group in a strong financial and managerial position to embark on further expansion in due course, they add. The directors forecast that net profit for the year, based on current information, will again exceed 51.000.000. Net

i I profit for the year to June 5 30 amounted to $1,105,557. I In another development, -! I.E.L. appears to have lost the i take-over battle for Muswells i brook Industries, Ltd. i! Forestwood Australia, Ltd, announced yesterday, that it ! held 88 per cent of the share ■ capital of Muswellbrook. > I.E.L.’s bid was frozen by the Federal Government .‘under the Companies 1 (Foreign Take-overs) Act ‘ until April 26. , Similarly, two other I.E.L. ' bids have been frozen in the ' past. However. Mr Blackburn < would not comment on s —

whether or not the I.E.L. bid would be withdrawn. The directors say in their interim report that the future development of the company would depend to some extent upon the provisions of the Companies (Foreign Takeovers) Act. B.H.P. tax-free dividend The Broken Hill Pty Company Ltd. half-year dividend to be paid on May 30 will be from company income exempt from income tax. It will be at the rate of 7{ per cent, making 144 per cent for the year on May 31. This is the same rate as last year. In 1971 134 per cent was paid on capital before a one-for-10 bonus issue. The shares will be quoted ex dividend on April 9.