Tolley trading profit much lower

Press, 16 February 1978, Page 16

Tolley trading profit much lower

Commercial

Tolley Holdings, Ltd, reports audited net earnings of $843,415 for the year to November 30, after adjustments I for exchange fluctuations, land a large tax credit in the current year, compared with $613,674 earned in the previous eight months. The company’s liability i for future taxation has been I reassessed, in light of taxation incentives, and allowances available, and the deferred tax provision has been reduced by a transfer to earnings in the latest year of $562,633.

I This transfer is included with a trading profit of $250,990 in the result for the latest year. The trading profit for the previous eight months was $735,193.

Problems encountered in the company’s manufacturing activities have re-

(suited in a trading profit much below the board’s expectation. Nevertheless, the company's ability to compete, both technically and on price in sophisticated world markets was demonstrated by the record level of export sales, the directors say. The one-for-four cash issue, and a reduction in inventories, have strengthened the company’s finances. Action has been taken to improve the manufacturing performance and, with a firm order book, the directors believe a satisfactory result should be achieved in the current financial year. The board recommends an unchanged 10c a share dividend.

The shares issued in 1977, in acordance with the terms of issue, will receive a dividend of 5c each.

Implementation of the boards objective of an increased dividend, announced last year, has been delayed because of the lower trading profit, but it remains as a basic policy of the board.