Ceramco profit $2.7M

Press, 23 June 1978, Page 11

Ceramco profit $2.7M

Ceramco, Ltd, reports that audited group net profit for the year to March 31 increased 6.5 per cent to $2,694,513, including equity earnings of $71,277.

The group’s sales for the year rose 5.9 per cent to 554.6 M. Taxation provided was .$764,880, against $1,383,066 for the previous year. Export incentives, and the effects of the stock valuation adjustment are reflected in the lower taxation provision. The stock valuation adjustment reducted the provision for taxation $167,162.

Ordinary share capital was constant at $7,504,517, and shareholders’ funds on an equity accounting basis increased SI.4M to $22,587,983. Tlie earning rate on average ordinary shareholders’ funds fell to 12.6 per cent from 12.7 per cent but earnings on ordinary shares increased to 35c from 33c. The directors recommend a final ordinary dividend of 9c a share (9 per cent) which together with the

interim ordinary dividend of 5c a share maintains the ordinary dividend rate at 14c a share (14 per cent). The final dividend is payable on August 24 from taxfree sources.

The total ordinary dividend requires $1,050,633, and it is covered 2.5 times. The results do not include figures from Mason Industries, Ltd, which merged with Ceramco after March 31. The offer by Ceramco to acquire all the ordinary shares in Mason was declared unconditional on April 7. The offer closed on June 21, with acceptances totalling 99 per cent, and it is intended to acquire the balance of the shares under the compulsory purchase rights contained in the Companies Act, 1955.

The Mason group audited tax paid profit for the year to March 31 was $1,121,’927, including equity earnings of $139,037. The profit for the previous year was $1,141,811. Taxation provided was $278,127 ($711,651 in 1977).

The reduced taxation provision reflects the stock valuation adjustment of $170,774 and export incentives. Mason group sales rose 1.2 per cent to S24M. Masons ordinary capital at balance date was $2,767,200 and shareholders funds totalled $10,236,990. A final tax free dividend of 9 per cent will be paid by Mason Industries to Ceramco to cover the dividend payment on the ordinary shares of Ceramco issued since balance date to former Mason shareholders, which participate in full in the Ceramco final tax-free dividend. The Ceramco and Mason results combined show a net profit of $3,816,440. Ordinary share capital would be $10,271,717, and earnings per ordinary share 36c, with dividend covered 2.6 times. An unaudited set of accounts showing the effects of the merger will be published with the annual report. The annual meeting of Ceramco will be held in Auckland on August 24.