Woolworths to pay 15 p.c.

Press, 23 October 1978, Page 15

Woolworths to pay 15 p.c.

Woolworths (New Zea-|; land) Ltd, had its best-everi, result in the year to Septem-: ber 27, with a substantial ' improvement in all figures! — the dividend is raised! from 12 to 15 per cent. The figures are subject to!: audit. Group net profit rose 59.51 per cent to $1,989,974. It! was after providing $122,425! less for taxation at $845,704, I

and $13,867 more for deprecation and amortisation. Investment income increased from $6203 to $7098, and the share of tax-paid profit of an associated company fell from $8640 to 87562. In the latest year, which like the previous year had 52 trading weeks, sales rose 10.5 per cent to $157.8M. The tax-paid profit of $1,989,974 is after trading stock valuation adjustment of $415,931; if this adjustment is excluded the taxpaid profit amounts to $1,574,043 — an increase of 26.2 per cent. The tax-paid profit of $1,989,974 is subject to preference dividend payments amounting to $98,692. leaving a balance of $1,891,282

which is equivalent to an 11 earning rate of 34.4 per cent it on the paid up ordinary It capital of $5,503,850 (last! year 20.9 per cent). i < The tax-paid profit of!: i $1,987,974 represents 126 c I. |in each sales dollar (last ; l J year 0.87 c). i I The sales increase of 10.5 i per cent is considered satis- < factory, having regard to di- i '! fficult economic conditions : and the competitive market, | the directors say. ) The increased profit was achieved mainly because of' -

tighter control of costs and expenses, and greater operating efficiency. A final dividend of 10 per cent, equivalent to 5c a share (last year 3.5 c) making a total of 15 per cent for the year, or 7.5 c a share (last year 6c), on the issued ordinary capital and payable on December 14 will be recommended. The dividend, if approved will be distributed from the share premium reserve, shares will become ex dividend on No'vember 8.