Progressive expects bright year

Press, 2 August 1977, Page 25

Progressive expects bright year

PA Auckland i Progressive Enterprises, j Ltd. is looking forward to a. bright current financial year. I The chairman (Mr B. H.' Picot) told shareholders at | the annua) meeting that sales during the first three months to June 30 are 27.31 per cent ahead of last year, | He also pointed out that, profitability, although better: than last year, had not kept! pace with the increase ini sales so far. through higher I expenses, such as energy | costs, and the effects of inflation. "Although the business t climate is not an easy one, ■ our corporate base is strong: and we are well placed to meet the future.” Shareholders approved the recommended dividend of 10 cents a share (10 per cent) half of which is tax-free from the share premium account. At an extraordinary meeting immediately after shareholders also endorsed the planned two-for-five issue of 12 per cent convertible preference shares. These will

[convert, on a one-for-one l ! basis, on April 1, 1983. Mr Picot said that the! I customer count in Foodtown I supermarkets had increased j 13 per cent. i He apologised to share-1 I holders for the unsatisfacI tory return by way of diviI dend, and pointed out that I [Whereas in 1974 30 per cent* lof tax-paid profits was paid : out in dividends, the dis- | i: tribution for the last finan- I ictal year totalled only 17 ■ I per cent. Mr Picot said that Pro-• gressive Enterprises had a i well above average ratio of , 1 cash flow to total funds em- • ;: ployed, over 11 per cent but I > the company was still feel-i • ing pressure on cash re-i : sources. I ‘‘One of the reasons fori I our strong cash flow is the 1 i high proportion of profit rei invested,” he said. “But, although this policy I - has facilitated the growth of I I the company, it has reduced I ijthe recommended dividend is I . > dividends to an unacceptably i II low proportion of profits, j