Transvision profit $328,814

Press, 6 May 1978, Page 18

Transvision profit $328,814

PA Auckland Record growth in television rental business helped Transvision Holdings, Ltd, earn an unaudited trading profit of $328,814 in the fifteen months to March 31, the directors say. A dividend of 7.5 c a share (7.5 per cent) is recommended for the 15 months compared with 5c a share for the previous 12 months. Television rental placements in April were a record, exceeding even the level of placements in the boom period before the 1976 Olympic Games, the report says. However, the profit in the latest financial year was after a much smaller extraordinary write-off of $30,603, in respect of exchange fluctuations, compared with a write-off of $158,170 in the previous year.

No tax provision was necessary, because companies within the group have taken advantage of available taxation incentives, which exceed the profit before tax. Provision has been made for all contingencies, and doubtful receivables.

The profit for the fifteen months represents an earn-

ing rate of 12.3 per cent on average shareholders funds. According to the directors, the continuing increase in profitability reflects the growth in contracts written by the colour television rental subsidiary, Transvision Rentals, Ltd. The results of the financing subsidiary, Finance House, Ltd, and the importexport subsidiary, Transvision International, Ltd, were in line with the previous year, they say. Cash flow, net profit plus depreciation, was in excess of SL3M in the latest period, and this is expected to increase in conjunction with the growth in the television rental business.

The rental company is established in maj or _ centres throughout New Zealand, and the directors expect a further worthwhile increase in profit in the current year. In addition to the trading profit, the company realised a capital profit of $22,261 from the sale of a property. The latest result, which is the equivalent to $263,050 for a twelve month period, shows an increase of 16.6 per cent on the profit for the year to December 31, 1976, of $225,497.