COMMERCIAL Exports help U.E.B. profit; dividend 8c

Press, Volume CXVI, Issue 34153, 14 May 1976, Page 16

COMMERCIAL Exports help U.E.B. profit; dividend 8c

Helped by a 61.5 per cent increase in export sales, the group net trading profit of U.E.B. Industries. Ltd. rose 15.7 per cent to 56.6 m in the tear to .March 31. the directors says in a preliminary report.

Tite annua! dividend rate its beer rai-ed from 75c a (hare (15 per cent! tn 8c a »hare (l‘» per cent). The company will make a ene-tor-five non-renouncable issue of 50c specified preference shares in July. The specified preference share issue with a cumulative dividend of 12 per cent, trill raise $4,632,120. The shares are redeemable after 10.5 years, by conversion into ordinary shares at par lone-for-one).

However. holders will have the option to require conversion on a fixed date each year, after the first 5| years. The preference shares will participate in cash issues, and at redemption any! bonus issues will be taken into account. There was an extraordinary loss of $lOO,OOO as against a profit of $17,000 previously. The change to straight-line depreciation caused the trading profit to rise $224,000. which accounted for 25 per cent of the $890,000 increase for the year. The provision for depreciation was not given. Gro-.p sales revenue increased 15 per cent to $ 126.0 m Export sales rose •$3.7m to $9.7m. Carpet sales to Australia increased substantially, as did sales to Canada. Hong Kong and the Gulf States. The exporting of lucerne pellets, yarn and packaging products also rose. The demand for the main products, carpet and packaging. increased in the final six months, and enabled the company to finish the year on a strong note, the directors say “Sa’.c-s of carpet, both on the domestic and export mark-its, are continuing at a high level, while packaging sales are showing an increasing trend, both in New

Zealand and Australia. Pre-tax profit rose 5 per cent to $10.5m The profit was after pro-; viding $140,000 less for tax' at $3,4m, and $185,000 less for minority interests at $700,000 The share in the profit of associated companies increased from $154,000 to $200,000. Shareholders' funds rose $6.5m to $47.2m. and the earning rate on average funds fell to 13.7 per cent from 14.6 per cent previously. The earning rate on capital rose from 26.3 per cent to 3 per cent. The final dividend of 5c a share (10 per cent) is payable on July 23, ex dividend July F.