Profit trend up for TNL

Press, 4 March 1978, Page 19

Profit trend up for TNL

The January profit estimate of TNL Group, Ltd, indicates an improving trend in all divisions, except coach tours, says the chairman (Sir Jack Newman) in a full interim report to shareholders.

The principal causes for the downturn in the profit in the six months to December 31 were a severe decline in profit in the coach tour section, especially for tours from Australia, and the freighting divisions in some regions, he says.

“There was also a reduction in investment income in some sectors, and profits on the sale of assets are down from $341,000 to $32,000.

“The manufacturing and mineral divisions are ahead of last year,” Sir Jack Newman says.

TNL continued to experience the downturn in the economies of Australia and New Zealand. “The Australian tourist makret has contracted, internal costs have continued to

I rise and competition for a I declining market has precluded increases in tour [charges. “Authorised freight rate [increases by the Ministry of [Transport continue to lag behind spiralling costs,” he says. As announced, group net profit fell 38.8 per cent to 81,022,000 including the share of profits from associated companies. Group revenue increased 12.1 per cent to $22.3M, but expenses rose 15.7 per cent to 521.4 M. The earning rate on average shareholders’ funds on an annual basis fell from 18.6 per cent to 8.4 per cent on the latest result. The profit was after providing $308,000 less for tax at $196,000. calculated on an annual basis. The interim dividend has been raised from 3c a share to 3.5 c a share (7 per cent), and is payable on May 31, ex dividend May 8.