Issue at 150c by Progressive

Press, Volume CXIII, Issue 33386, 19 November 1973, Page 19

Issue at 150c by Progressive

<\'ew Zealand Press Association) AUCKLAND, November 16. Progressive Enterprises. Ltd, operator ol the Foodtown supermarket chain, will make a one-tor-live cash issue of ordinary 100 c shares at a premium of 50c each, the directors say in the half-yearly report.

The new shares would qualify for the dividend for the current financial vear to March 31. Last year's dividend rate of 10 per cent was expected to be at least maintained on the increased capital. The time of the issue had not yet been completed, but entitlements would be issued by mid-December and the issue would close about midFebruary, the directors say. The issue would raise 5403.575 and would increase issued capital from 51.345.250 to 51.614.300. In the last full year, the group increased sales 28.6 per cent to 527.7 m. The group net profit was 15.1 per cent higher at §530,028, representing an earning rate on capital of 39.4 per cent. The earning rate on shareholders’ funds fell from 24.8 per cent to 19.0 per cent. The unaudited net profit of the group for the halfyear to September 30 had been successfully maintained against the same period last year the directors say. They consider the result to be very satisfactory, and notwithstanding heavy expenditure and systems changes expect an equally satisfying result for the full financial year. The directors say that it is extremely unlikely that

lithe new price regulations ( r'would have any effect on f 3 the company’s trading. > Its present supermarket q ? prices were considerably I, j below approved maximum i retail prices the directors:] ’say. i, L During the half-year, theij t retail subsidiary opened two new supermarkets and start- , i e ed grocery-distribution oper-l; .Rations from its new dis-h tribution centre at Mangere. ] e n /lust. tert, record , The group net profit of 1 Fertilisers, Ltd, I, 6 rose by 98 per cent to a ree cord $2.7m in the year to 11 September 30. The directors 1.1 say that fertiliser sales ine creased by 32 per cent over ' -•jthe previous year after fur- '• ther improvement in the rural 1 8 economy. A final and total dividend of 9 per cent has [t been recommended. The com■jpany last year paid a total <f dividend of 9 per cent, but a the latest dividend will be I paid on capital increased by t a one-for-three bonus issue. ' d Kanieri gold s The gold dredge Kanieri in l y the last month to November] 11; 14 recovered 300 ounces of bullion after working 225. tihours and moving 172,0001 ,t I yards of spoil.