Sharp profit fall by I.A.C. Holdings

Press, Volume CXV, Issue 33776, 24 February 1975, Page 19

Sharp profit fall by I.A.C. Holdings

the group net profit of I.A.C. (Holdings). Ltd. fell S4.om or 36.8 per cent to 86,822,000 in the year to December 31, the directors say in a preliminary report.

The profit includes extra-1 ordinary items amounting to $732,000, which is 8559.000 higher than for the previous year. The tax provision was down S6.om at Ss.lm. Receivables were 589.7 m higher at $804.4m at December 31. A final dividend of 3.75 c a share is payable on March 26, making a steady 7.5 c a share for the year. The profit was affected by abnormal losses in the real; estate sector, where the company wrote off S2m in bad debts and made an additional provision of $4.5m for future losses. In addition $3.9m ini interest was foregone on

loans placed on a non- 1 accrual basis. Another factor which j adversely affected earnings ( was a pre-tax provision ofi Sl.7m for losses of an insur-i ance subsidiary after the Darwin cyclone, the company said. The pre-tax operating j profit was $25.2m ($24.8m). This was in an abnormally | tight liquidity period when! profits were squeezed by the) increases in interest rates to; ! historically high levels. During the year, 1.A.C.: was materially assisted by an ( unstated significant infusion; of funds from its largest) shareholder (21.7 per cent),] I First National City Bank, the) company said. j