Fletcher profit rose $4000

Press, 9 June 1978, Page 11

Fletcher profit rose $4000

Fletcher Holdings, Ltd, plans to increase its annual dividend rate from 16 per cent to 18 per cent (18c a share), after increasing unaudited group net profit $4OOO in the year to March 31. The profit was substantially assisted by a much lower tax provision and, on an equity basis was $15,251,000, compared with $15,247,000 in the previous year. The provision for tax in the latest year was $3,650,000, representing a reduction of $3,810,000 compared with the previous year. The group’s net trading profit fell 22 per cent to $17.4M. The earning rate on slightly higher capital eased from 51.4 per cent to 472 per cent. The entire dividend for the year is to be tax-free, with 5.5 per cent of the 10 per cent final dividend coming from tax-free revenue reserves, and 4.5 per cent from the share premium reserve. The total profit for the latest year includes investment income, net of tax of $3,497,000 and equity in associated companies’ profits, which more than doubled

from $2,566,000 to $5,391,000. It was also after exchange losses of $2,208,000 (down $117,000) and minority interests of $683,000 (up $55,000). Turnover eased SI.3M to $364M, but in real terms was down more, the chairman (Mr J. C. Fletcher) says in the preliminary announcement. Sales of SI7IM in the second half compared with $192.4M in the first half, and $185.2M in the second half of the previous year. Interest expenses rose $2,424,000 to SIOM. “The results are satisfactory, considering the fact that nearly all areas of activity were affected by the downturn in trading conditions,” Mr Fletcher says. While some activities have shown inadequate earnings, results were assisted by early action to reduce stocks, debtors and costs. After a 39 per cent increase in export sales to $15.9M, the group is hopeful of wider successes from its intense activity in many export markets. The final dividend is payable on August 3, ex dividend July 18.