Allen Industries to review dividend rate

Press, 18 March 1977, Page 16

Allen Industries to review dividend rate

Commercial

PA Auckland; The current dividend re-i strictions prevented Allen; I dustries, Ltd. from in-1 creasing its annual dividend 1 rate after group net profit rose 56 per cent to §624,356 in the year to December 31. However, the chairman (Mr L.- R. Allen) says in his annual review that the position will be reviewed in May when the dividend freeze will be lifted or amended. Mr Allen describes the

: profit as gratifying. How(ever, as Allen Industries is capita] intensive, because of :the seasonal nature of its i business, inflation is important. While the profit increase j is good, he says, it actually shows a growth rate of no more than inflation since 1973. Good sales were recorded by the New Zealand calendar and specialty division, | with satisfactory profit (gains. But, new season sales (are behind last year. The future of this division ’ depends largely on relative 1 exchange rates. During the year, sales of bookmatches did not reach the desired level. Colorgraphic (N.Z.), Ltd, showed significant growth during the year. Also Allen Industries completed two warehouse and office complexes at Hender-

son and Pakuranga which are to be leased.

Mr Allen says the building programme will be expanded this year. The profit was after providing $3073 less for depreciation at $35,652, but $79,265 more for taxation at $198,757. A recommended final dividend of 10c a share makes a steady 15c a share (15 per cent) for the year. It. requires an unchanged $102,600. Earning rate on ordinary capital rose from 50.3 per cent to 91.3 per cent, while that on average shareholders’ funds is up from 13.1 per cent to 19.6 per cent. Shareholders’ funds were $511,826 higher at $3,448,201, including steady ordinary capital of $684,000. Term liabilities are up I from $49,000 to $770,000.