Costain dividend raised

Press, 18 March 1977, Page 16

Costain dividend raised

NZPA Melbourne! Costain Australia, Ltd, the( British controlled building,; mining, and development! group, increased group net) profit 26.3 per cent to a record $Au5t2.493,000 in the year to December 31. The ordinary dividend has been raised from 8c to 9c a share (36 per cent) as forecast at the time of the one-for-four new issue last year, and is covered almost three times by the latest profit — the second rise in successive, years. The latest profit is almost! double the $1,299,000 result' earned in 1974. Interim dividend was lifted from 3c to 4c a share before the new issue, and!

final dividend now is steady at 5c a share on higher capital. This gives shareholders a rise of 28 per cent in income for 1976. In 1975, dividend income was raised by 33 per cent when dividend rate went up from 6c to 8c a share. Earning rate on capital adjusted for the rights issue is up to 108 per cent (or 27.1 c a share), the manag-ing-director (Mr Peter Costain) said in the preliminary report. This compares with earning rates of 84.6 per cent in 1975 and 61.3 per cent in 1974. Total turnover for the year rose 67.3 per cent to sB2m. Mr Costain said turnover

'I of the construction group • rose 65.5 per cent to $61.2m i and increased eamings from this division contributed satisfactorily to group results. )( The profit was after prot viding $283,000 more for tax i'at $1,608,000 and $559,000 (more for depreciation at I j $1,965,000. There was a s $142,000 investment allow- ■ ance benefit. ■ i The result excludes ; $184,000 of extraordinary (gains on repayment of overiseas loans. Goodwill of $847,000 on i the purchase of Vindin iiSuares Proprietary, Ltd, has (been written-off. ! Mr Costain says Vindin iiSuares contributed $55,000 lin the six months since the ■| take-over.