Commercial Ceramco celebrates 50th anniversary

Press, 3 July 1979, Page 23

Commercial Ceramco celebrates 50th anniversary

The expanded Ceramco, Ltd, group is planning a bonus issue, and an increased dividend rate after improved results in its 50th year.

The directors report that audited group net profit, for the year to March 31, was $4,228,851, including equity accounted earnings of $511,983, and before the deduction of extraordinary items of $44,567. The profit for the previous vear was $2,694,513.

The increase in profit includes $902,137 from the Mason Industries, Limited, group of companies, which merged with Ceramco in April 1978.

The result for the year represents an increase of I .8 per cent on the combined profits of the Ceramco and Mason groups last vear. The earning rate on average ordinary shareholders’ funds was 13.1 per cent (12.6 per cent for 1978) and earnings per ordinary share increased to 40c from 35c.

“Local trading conditions towards the end of the year under review re-

mained better than expected; this, together with a significant increase in the contribution from associated companies, enabled the company to record a more, satisfactory result than tvas earlier anticipated following the discontinuance of the stock valuation adjustment for tax purposes, and the difficult trading conditions experienced in the first half of the year,” the directors say.

Group sales rose 44 per cent to $78.6M. Taxation provided by group companies was $1,454,582 against $764,880 for the 1978 year.

Ordinary share capital increased from $7,504,517 to $10,441,117 as a result of the merger with Mason Industries. Total shareholders’ funds on an equity accounted basis, increased from $22,587,983 to $34,302,652.

The directors recommend an increased final ordinary dividend of II c a share (11 per cent) which together with the interim ordinary dividend of 5c will raise the total ordinarj’ dividend from 14c to 16c a share. The final dividend will be

paid on September 14 from tax-free sources.

To mark the company’s fiftieth anniversary, the directors recommend a 1-for--10 bonus issue from the share premium account. The bonus issue would apply to ordinary capital at August 31, including shares issued in the acquisition of Tappenden Industries, Ltd, and if approved, will qualify for the 11 per cent final ordinary dividend to be declared for the year.

A final dividend will be paid by Tappenden Industries to Ceramco to cover the recommended dividend on the ordinary shares of Ceramco.

Holders of specified preference shares will participate in the bonus issue on exercising their right, in 1982, to subscribe for ordinary shares. The ordinary dividend is covered 2.3 times. The year’s results do not include the Tappenden Industries group, which was acquired since March 31. The offer for Tappenden shares was declared unconditional on May 11 and (closed on May 31 with i acceptances totalling 98 per 'cent.