Travelodge div. missed again

Press, Volume CXV, Issue 33959, 27 September 1975, Page 19

Travelodge div. missed again

f.Vcu’ Zealand Press Association—Copyright) SYDNEY. The group net profit of Travelodge Australia. Ltd. fell 32.1 per cent to $A700,000 I in the year to June 30. and the directors have foregone recommending a final dividend. making it three-and-a-half years since shareholders received a payout.

The dividends were| istopped when earnings fell, front a record sl.2m toi 8817,000 in 1971-72 and the preliminary report gives no;: I indication of when they I : might be resumed. ; ' The latest slump in earnings was despite a 19.4 per cent. increase in sales 1 I $30.1m. : But the return on each I sales dollar fell from 4.1 c to 2.3 c. I “Motel and hotel business , again suffered from the pronounced reduction in business travel, the sharp , decline in visitors from (North America, and the growing preference of Aus- 1 tralians to spend their holi- , ■ days overseas,” the directors ' Isay. The fall in profit was caused by the decline in , room-occupancy rates, along I with increased wages and other costs, making trading extremely difficult. No projects are under con-; struction in Australia and none will be started in the! immediate future. I

Revenues, and profits from; .overseas sources, and from; ; non-motel activities were satisfactory, the directors; ■say. The auditors have again; qualified their report, because of depreciation not; having been provided for buildings on freehold, and some leasehold land. The directors still consider that a provision for depre-; ciation on these items is I unnecessary, considering the 1 company’s experience in re-i alising substantial profits on I sales of properties. Excluded from the net profit were extraordinary gains of $406,000 (previously $423,000), arising from profits on the sale of properties, currency fluctuations, j and the recoupment of tax; losses in previous years. The result was after pro-; viding $249,000 less for tax, lat $61,000. but provision for) depreciation, amortisation; and replacements rose; $107,000 to sl.om.