U.D.C. profit doubled

Press, 24 May 1977, Page 22

U.D.C. profit doubled

U.D.C. Group Holdings, Ltd, more than doubled audited group net profit from trading in the year to March 31. The profit of $1,460,000 includes the profits of associated companies, and compares with the profit of $710,000 for the previous financial year. As a result of the devaluation of the New Zealand dollar during the year, and a rearrangement of the group’s overseas borrowing after the transfer of a shareholding in Endeavour Investments (New Zealand) Ltd from United Dominions Trust Ltd, to the Australia and NewZealand Banking Group, Ltd, it was necessary to write off a further $119,000 after tax in the current year’s accounts, reducing the net profit to $1,341,000. An amount of $19,000 has been transferred to the profit and loss appropriation account from the exchange fluctuation account to take

into account exchange variations on outstanding overseas borrowing. The profit was after providing $489,000 more for taxation at $1,001,000, and $114,000 more for depreciation, at $347,000. There was a strong demand for the company’s services during the year and despite a “hardening” in interest rates during the last ;half of the financial year all divisions of the group contributed to the record profit, the directors say. A final dividend of 6.5 per cent is recommended on ordinary shares, other than those shares to be allotted from the one-for-two cash

issue. This dividend requires $312,000, and the steady total dividend for the year of 12.5 per cent (12.5 c a share) requires $600,000. The final dividend is payable on August 3. Capital and reserves stand at $9,299,000, ($8,166,000). Total assets, excluding deferred income, at balance-date amounted to $84,717,000, ($53,785,000).