Enlarged Donaghys profit higher

Press, 25 November 1977, Page 16

Enlarged Donaghys profit higher

Donaghys Industries, Ltd, rope and specialty food manufacturers, increased unaudited net profit 30 per cent to $642,261 in the halfyear to September 30. The group earned a profit before tax of $1,079,430 compared with $894,392 in the previous corresponding six months.

The results for the halfyear included, for the first time, a profit-contribution from the subsidiary companies, Nixon Industries, Ltd, and Polypropylene Products, Ltd, which were acquired on April 1, 1977. The provision for taxation of $437,169 was $35,029 higher. An unchanged interim dividend of 5 per cent (5c a share) will be paid on issued ordinary capital on January 31. “Due to seasonal factors in the trading of the enlarged group, the profit for the period does not necessarily reflect the expected

full year results,” the chair-' I man (Mr R. W. M. Green-1 I slade) says. “Volume sales during the ■ half year showed improve- : ment over the set objectives : in all operating divisions. ! While some loss of momentum has become evident : since September 30, due to the general downturn in the

national economy, assuming that this does not further deteriorate significantly, the directors are confident of a satisfactory result being achieved for the full year,” says Mr Greenslade.