Year to remember for Ernest Adams

Press, 15 June 1979, Page 6

Year to remember for Ernest Adams

Ernest Adams, Ltd, plans to make a one-for-four bonus issue, and pay a higher dividend after a notable year for a number of reasons."

The Christchurch-based baker of goodies was established in 1929, and its 50th year will be remembered for growth, as well as an historical date.

In the 12 months to March 31 sales increased 25 per cent to $5.9M, and audited net profit rose $84,700, or 63 per cent to $219,648. A final ordinary dividend of 7c a share is recommended, making a steady annual rate of 12c a share, (12 per cent), but a Jubilee dividend of 2c a share is also payable on July 13. Shares will be ex" dividend on July 11, and ex bonus on July 27. The sales increase allowed

more intense utilisation of plant and staff, with the resultant substantial improvement in profitability. Sales in the first two months of the new financial year are up to budget, and firm orders have already been received for Christmas : goods. There have been some sharp increase in costs which must ultimately affect prices, making trading for the year difficult to predict. On balance the directors are confident that the year ahead will be a satisfactory one for the company, the preliminary report says. The annual meeting will be held on July 26. The profit was after providing $86,657 more for tax lat $168,290. I Net earnings per share (rose from 33.7 c to 54.9 c.