Waitaki-N.Z.R. Group earns more than $5m

Press, Volume CXV, Issue 34022, 11 December 1975, Page 22

Waitaki-N.Z.R. Group earns more than $5m

The consolidated net, profit of the merged Waitaki-N.Z.R. Group exceeds the predictions made by the directors at the time of the merger negotiations, when a group profit of at least $4.5 million was envisaged.

The directors of New Zealand Refrigerating Company. Ltd — the group has not : yet changed its name — an-: nounced yesterday, in a pre-' liminary statement. that, group net profit for the year) to October 1 was $5,011,000. Last year, N.Z. Refrig-■ erating had a loss of $2,322,549, while Waitaki reported an operating profit of $1,226,522 The profit was after charging $3,326,000 for depreciation, and deducting $67,000 for minority interests. It is also after providing full current and deferred taxation on al! profits for the year. The tax benefit of $1,012,000 available to New Zealand Refrigerating, because of the loss recorded in the 1974 year, has been credited separately to undistributed profits as a previous year adjustment, and the profit of $5,011,000 for the current year excludes this tax benefit. The directors say that they are pleased that the profit of the merged group for the 1975 year is in excess of the estimate given to shareholders at the time

the merger scheme was proposed. Total group assets at October 1 are $97.5 million, and the profit represents a return of 5.1 per cent on total assets. Shareholders’, funds will be about $46 m, allowing for the completion, of the merger; the return on these is about 10.9 per cent. As detailed in the merger scheme, a final dividend of; )6c a share from realised capital profits (exempt from ■ taxation in the hands of (shareholders) has been provided. These realised capital profits were available in'the ■ accounts of Waitaki Industries, Ltd. at the time of .the merger. The dividend is: payable on the increased capital issued to the Waitaki share and note holders and I the bonus issue of the 1 N.Z.R. shareholders. Allowing for the anticipated completion of the ■ merger before the annual) ; general meeting, the final; (dividend will absorb $1,305,000 The annual general meet-) ing will be held on March 4. ■and the final dividend will) ,be paid on that date. Shares) ■ will become ex dividend on) I February 17.