Year of growth for Marac

Press, 10 May 1979, Page 18

Year of growth for Marac

PA Auckland Marac Holdings, Ltd. is' ■ raising its annual dividend irate from 15c to 16c a share after group net profit improved 9 per cent to $3,109,000, in the year to March 31. This improvement was despite a tax provision of $2,489,000, compared with $287,000 in 1978 because of the availability of export tax incentives at that time. The chairman (Mr J. C. Fletcher) says the profit in the second-half of the year of $1,748,000 showed a marked improvement over the $1,361, 000 earned in the first six months.

The profit for the secondhalf of 1978 was $1,282,000.

The past financial year was a period of steady growth for the group, both in New Zealand and internationally, he says. Economic conditions allowed adequate funds to be raised to meet loan demand, although interest rates on borrowings increased as the Government moved to fund its internal deficit from 'the public. In the year ahead the group had set some demanding targets, which might be

difficult to achieve in the light of the Government's announced intention to slow the growth in both money I supnly, and private sector! credit. 1 During the year, the ■ group's total assets, ex-i eluding bills discounted, rose! 'from SIB2M to SI99M. The earning rate on capi-! tai was up from 29.1 per cent to 31.1 per cent, and that on average share- : holders’ funds rose from! 14.2 per cent to 14. 4 peri cent. The final dividend of B.sc■ a share (8.5 per cent) is;i payable, like the interim; 1 dividend from tax-free' sources. The total 16c a share divi-i dend is covered 1.9 times by! l the net profit. The dividend; payment will be made after; the company's annual meet- ! ing on July 3, and shares 1 ' will be ex dividend on June! 19. The latest dividend rate!’ increase is the first since; the company established a;’ 15c a share rate in 1973. _____ . Personal i h Mr A. T. Gibbs has re- < signed as a director u, Newli Zealand Land Securities, Ltd. 1 ]