TNL looks to exports

Press, 17 November 1977, Page 20

TNL looks to exports

Commercial ff—»wib— -■ war?: ’*rr 1

TNL Group, Ltd, intends to continue its policy of development and expansion, particularly in exports, says the chairman (Sir Jack Newman) in the annual report. As announced, group net profit rose 55.1 per cent to $3,691,969, in the year to June 30, including the share of profits of associated companies.

Tour passengers from Australia increased 10 per cent in spite of a downturn in the total Australian market handled by New Zealand i tour operators. The profits of Newman

Coach Lines again increased, although the return on capital employed declined marginally.

“It is expected that this trend will continue in the coming year because of the large flow of capital ex-

penditure into this division.” The freight division for the first time exceeded 100 M tonnes carried, which was an increase of 13 per cent per kilometre run. The profit was after providing $304,980 more for depreciation at $1,829,811, but $242,487 less for tax at $1,138,471 because of income tax incentives. Interest pay-

ments rose $174,131 to| $784,922. A recommended final dividend of 4c a share raises the annual rate from 6c a share

to 7c a share (14 per cent). The ordinary dividend absorbs $1,261,375 and is covered 2.8 times by the profit after allowing for the prefer-

ence dividend. Shareholders’ funds rose $6,552,136 to $23,677,052, including an increase of $342,152 in ordinary capital and the issue 10 per cent and 12 per cent preference shares for $3,512,348. The earning rate on capital rose from 28.2 per cent to 40.7 per cent, and on average

ordinary shareholders’ funds from 16.3 per cent to 18.1 per cent. Shareholders’ equity rose from 51.6 per cent to 55.3 [per cent.

Working capital fell $1,961,793 to $294,576, one reason for the fall being an increase in current liabilities of $2.3M to S3.IM in the bank overdraft. The current ratio fell from 1.3 to 1.0:1. The shares last sold for 80c for a dividend yield of 8.8 per cent and an earnings yield of 24.6 per cent. The price-earnings ratio was 2.0 and the net asset backing an ordinary share was 115 c.