T.N.T. profit only 20 p.c. higher

Press, Volume CXIV, Issue 33654, 2 October 1974, Page 21

T.N.T. profit only 20 p.c. higher

Despite a 78.8 per cent rise in gross revenue, the group net profit of Thomas Nationwide Transport, Ltd, rose only 20 per cent to 86,676,458 in the year to June 30.

With an extraordinary profit of $415,486 added, the profit result was more than s7m for the first time. The rate of profit growth is slightly better than last year’s figure of 16 per cent, but the net profit margin a dollar has fallen dramatically. In the year to June 30, 1972. the return per dollar was 3.91 c. In the next year it moved up to 3.94 c, but in the last year it has slipped back to 2.81 c. The managing director (Sir Peter Abeles) said that the group’s overall profit margin had slipped because almost s2m in losses from its Californian and British operations had been written off without any tax benefits. “Australia was a good year for us so we decided to get rid of our overseas problems,” he said. Revenue from its Australian operations were not significantly higher than the current rate of inflation, indicating that the company did not expand its share of the market during the year. Issued capital was increased by 49 per cent to 46.4 m shares after the exercise of 6.7 m options at par; a l-for-10 rights issue at $1.25; a l-for-10 bonus issue and a l-for-30 issue to convertible note holders. Consequently most of the ratios fell significantly. Earnings a share on end of year capital dropped from 19.3 c to 15.3 c while earnings a share

on average capital dropped from 20.4 c to 18.2 c. Asset backing a share also fell. At the end of June, 1973, it was 87c, while a year later the figure was 70c. The results of the associated companies have been included on an equity entitlement basis. They added $716,916 to the group result compared with $491,488 the previous year. Equity accounting was not applied to the 23.4 per cent investment in Ansett Transport Industries, Ltd, and only dividends were included. A final dividend of 4c a share has been recommended, making a total of 8c a share, unchanged from the previous year.