Commercial Steel and Tube plans 1:5 bonus issue

Press, 31 May 1977, Page 32

Commercial Steel and Tube plans 1:5 bonus issue

PA Auckland: Steel and Tube Company I of N.Z. Ltd, is planning toj make a one-for-five bonus‘ issue after a 27.6 per cent rise in group net profit ini the year to March 31. The directors say in a pre-1 liminary report that they | have deferred the annual; Business personal i Williamson Jeffery, Ltd, j reports that Mr G. R. Lawn! and Mr R. A. Rebelin have! joined the board. Mr Lawn 1 : is managing director of Hay-i wrights, Ltd, and a director; of Challenge Corporation Industries, Ltd, and several! associated companies.

I!meeting until after the ex-:-;piry of the Limitation of’ ■ Dividends Regulations to 1 ienable the issue to be made. I. i The profit for the latest ‘year was $1,640,000 higher : [at $5,940,000 after deducting! minority interests and provi- i [sion for unrealised exchange' [ losses on overseas borrowings. j Sales rose 17.2 per cent; [from S93M to SIO9M. I Included in the profit is | the group’s share or associ-I ! ated companies’ earnings, [ [while comparative figures; have been adjusted to in-: i elude those of C.S.I. Engin-j eering, Ltd, acquired during [the current year. The earning rate on capital is up from an adjusted

145.6 per cent to 55.3 per ' cent. The return on sales improved from 4.1 per cent to 15.4 per cent. An 8.5 per cent final : dividend will be paid on | capital enlarged by the [bonus issue. This is equal to ' an effective rate of 10.2 per cent on present capital. Together with the 8 per j cent interim, this makes the ‘total dividend rate a steady [ 16.5 per cent (8.25 c a share), ! which, because of the final: [ payment on bonus shares, is [equal to an effective rate of [18.2 per cent. i The final dividend is tax-| : free, and the total dis-; tribution is covered three times by earnings.