W. R. Carpenter gains outweighed falls

Press, 27 March 1979, Page 18

W. R. Carpenter gains outweighed falls

W. R. Carpenter Holdings, Ltd, increased group net trading profit 76 per cent to sAusts.lM in the half-year to December 31. The Australian trading divisions improved performances. Increased profits came from the Claude Neon illuminated signs, poster and scaffolding business, a turnabout in profitability of the textile interests, and losses fell in the property finance and development divisions. Funds employed in the property finance and development divisions have been reduced from $44.7M in June to $39.2M in December, 1978, and are expected to be less than S3SM in June.

Substantial losses were incurred in the Arrowfield Wines division, because “the industry has been plagued with aggressive selling and excessive discounting.” Most of the company’s products increased in price from January 1. In Papua New Guinea, profits declined due in part to a retrospective tax increase, but also following the decline in commodity prices, particularly in tea, coffee and cocoa. An interim dividend of 5.5 c a share will be paid on April 27. Earnings a share of 11.7 c on unchanged capital covers the interim dividend 2.1 times.

Tax provision, without taking account of any tax benefit arising from trading? stock valuation adjustment rose by 43 per cent to $3.9M. Minority interests amounted to $BB,OOO, compared with $60,000 in the preceding year. There was an extraordinary loss of $874,000 (loss of $2,432,000 in the preceding year). This was made up of a special provision for loss in the value of shares in Associated Securities, Ltd, less profit on sales of shares. Group interest charges were 18 per cent higher at $4.9M and depreciation charges were 25 per cent higher at $3.1 DU