N.Z.T.S. profit lower

Press, 15 November 1977, Page 10

N.Z.T.S. profit lower

The operating profit of N.Z.T.S. Holdings, Ltd, fell 4.5 per cent to $853,000 in the six months to September 30 — after providing $32,000 less for tax at $698,000, the directors say in the halfyearlv report. Excluding the new acquisitions, sales have increased 18 per cent over the same period last year. The major sarea of sales growth is in the workwear divisions, although the N.Z.T.S. Services] and A.B.M. divisions also increased sales, particularly from new customers. Linen supply sales to hotels and motels, however, were reduced. The profit reduction year is caused mainly by new acquisitions in Wellington and Dunedin incurring significant increased costs to altered buildings, work loads, and systems, to cope with future expansion, the directors say. The results that will accrue : from these expenditures will not be fully realised until later.

The directors are confident! that the trading profit for i the full year will show an ■ improvement over the result i for the latest year to March 31. In addition to the operating profit significant capital profits have also been earned on the sale of surplus assets. The directors have authorised the payment of an interim dividend of 8 per cent (4c a share); the in’crease of 1c a share in the interim dividend is done to make a more even distribution between interim and final dividend. Accordingly the directors expect to pay 10 per cent (5c a share) as a final dividend in respect of the 197778 year. The dividend is payable on the shares allotted in the 1:6 bonus issue made in September, and this means an effective increase of nearly 17 per cent. The interim dividend is payable on January 23, ex dividend January’ 6.