Bonus, and tax-free dividend from Atlas

Press, Volume CXIII, Issue 33251, 14 June 1973, Page 19

Bonus, and tax-free dividend from Atlas

(N.Z. Press Association—Copyright) AUCKLAND, June 13. Atlas Majestic Industries, Ltd, will pay a tax-free dividend of 124 per cent for the year to March 31. The payment is the first since 1968, and includes a 2! per cent bonus. It is higher than foreshadowed by the 5 per cent interim dividend and is covered 2.4 times by earnings.

The net profit for the year was $356,000, and because of past losses, the company does not pay tax. As Charles Begg and Company, the company earned $505,780 in 1964, and $552,776 in 1965. After a drop to $365,920 in 1966, there were losses in the next five years. Last year Atlas Majestic earned $53,000. The directors say in this preliminary report that the 1972 and 1973 profits could not be compared directly because of a material change in the pattern of trading. The managing director (Mr C. A. Pearson) said that with ithe recent restructuring programme, now completed, all divisions, subsidiaries, and associated companies were I budgeting for profitable tradling at a higher level in the 1973-74 year. The accounts for the year just ended would show a strong improvement in the group’s balance sheet, and this trend was continuing into the new year. The profit represented an earning rate on capital of 29.8 per cent. The final dividend of 5 per cent and the 2j per cent bonus will be tax free from capital profits as was the interim dividend. Since March 31, a cash payment has been received from Malleys, Ltd, the Australian appliances company, which has taken a half interest in the Christchurch appliances manufacturing operation. He said that, arising largely from arrangements made with the Australian partner, initial export orders received for products to be delivered from the Christchurch factory during the next 15 months were worth about s2m. The recent entry into poultry was proving

satisfactory, and the new subsidiary, A.M.I. Poultry, Ltd, was already contributing to group profits. Majestic colour television receivers manufactured by Consolidated Electronic Industries (the joint venture with Bell, 8.M.1., and Green and Hall, in which A.M.I. had a 50 per cent interest), would be released prior to the introduction of colour television in October. It would market 22-inch and 26-inch sets — the sizes in greatest demand in England and Europe. The establishment costs associated with setting up a colour television plant would be absorbed during the current year.