Mosgiel made good start

Press, 15 March 1978, Page 14

Mosgiel made good start

Mosgiel, Ltd, earned an unaudited profit before tax of $491,000 in the half year to December 31. This includes three months trading by of the newly-acquired Alford Forest mill, at Ashburton.

The method of accounting for certain overhead costs at the half year has been altered. If the new basis, had been used a year ago the comparative figures would have been $243,000 instead of $293,000 the report says.

Provision for taxation is $92,000 at standard rates after applying half of the stock valuation . concession amounting to $129,000. Export incentives earned, however, reduce the rate of ’tax to below standard for (the full year.

, Group sales for the half 1 year rose 20 per cent to $11.4M.

The second six months of I the financial year usually (produce sales and profits in excess of the first six months and the directors expect this seasonal variation will again obtain.

I The interim dividend has 'been raised from 4c to 5c a

share, and it is payable on April 28, from the share premium account. Accordingly, the dividend will not be taxable in the hands of the shareholders. The increase in interim dividend is at this stage intended to equate th interim and final dividends, and should not be necessarily taken to indicate an over-all raise, the report says. A dividend of 5.4167 c a share will be paid on April 28, on all specified preference shares covering the five months from December 1, to April 30.

Both shares will be ex dividend on April 5.