Fletcher sets new profit record

Press, 15 June 1979, Page 6

Fletcher sets new profit record

PA Auckland Fletcher Holdings, Ltd,in- I creased total unaudited group net earnings to a record $16,733,000 in the year to March 31 and plant to increase the final dvididend 2c to 12c a share.

The latest profti was a 9.7 per cent improvement on the 515.3 M earned in 1978, and was achieved on sales 9.1 per cent higher at 5397 M. Export sales rose 25 per cent to 519.9 M.

The trading profit, after providing $6,208,000 for tax, rose 10.1 per cent to $14,649,000. Tax-paid investment income was $3,900,000, net interest and exchange losses amounted to $6,883,000, and the groups equity in retained earnings of associated companies was $5,706,000. In a preliminary report the chairman (Mr J. C. Fletcher) said that the result reflected a strong recovery

i from the first half earnings iof $5,426,000.

Mr Fletcher pointed out I that it is the twentieth consecutive year of increased earnings. The latest result was after writing-down the book-value of some assets, because of constrained economic activity, to bring them into line with the companies assessment of their present worth. Further gains in exports were assured in the present year, as the group continued to build on established export markets. Associated companies also made significant progress in developing export business. Mr Fletcher said that further progress has been made in taking the group further into traditional activities. The acquisition of Firth Industries, Ltd, and two Wellington companies had extended Fletchers concrete and aggregates business in the area.

The group was wellsupported by investors during the year, and finances had been substantially strengthened by the success of both the SIOM bearer note issue and the $11.35M specified preference share issue, Mr Fletcher said.

The final dividend, which increases the annual dividend rate 2c a share to 20c a share (20 per cent) all paid from tax-free sources is payable on August 2, exdividend on July 15.