U.E.B. profit 36% higher

Press, 8 May 1980, Page 24

U.E.B. profit 36% higher

l The unaudited group, net; iprofit from trading of b.L.8..Industries. Ltd. rose 36 per 'cent to about 510.000.000 ml ■the year ended March 31, the■directors say in a preliminary i 'profit report. The result is a •record for the company. i Sales totalled SI92M (last; (year SI7O.SM. a rise of 12-4 i jper cent) and includes trad-. :in c of Ashlev Holdings, Ltd,; i Trans Holdings. Ltd, and/ I Fibreboard Packaging. Ltd.f I which joined the group dur- ■ ing the vear but excludes!' sales of the Tasman U.E.8.;( Holdings. Ltd, the 54 perji cent holding sold in October.; 1979. |1 Tax provided was-I 51.581.000 (last year 1 $781,239) and minority- inter- j jests $65,000 debit (last year < $557,733). The profit after extraord- ‘ inary items rose 48.8 per cent s to about $10,764,000, the r directors say. I A final ordinary dividend c of 13 per cent "is recom- t mended, payable from tax- s free reserves (last year 11 per cent). This makes the a total ordinary dividend for $ the year 20" per cent (last 1 year "17 per cent). The final f preference dividend of 4 per f cent (last year 4 per cent). 1 making a total for the year e of 74 per cent (last year 7| a per cent) is also recommended. Shares will become; ex dividend on July- 28. ■ Today the U.E.B. directors; will hold a meeting at which; 1 executive officers of N.Z. I Fbrest Products, Ltd, will be; present. . j - 'The chairman of U.E.B. i (Mr L. M. Papps) said that it was doubtful if anything substantive would be revealed after the meeting.

i However, the confirmation That merger discussions are in train has abruptly halted ithe intentions of an unidenti- • tied buyer — understood t 0 ,be Caxton Paper Mills a n d its associated interests— to buv seven million shares in ! U.E.B. The Caxton interests are unhappy with a U.E.B. pl an ’to set up a high-quality paper mil! near Hamilton |The manufacture of fight ■weight naper at the mil} |would directly conflict with •Caxton activities, but extend jthe N.Z.F.P. range. 1 The paper industry power jplay began on Monday when |the buyer accumulated about' five million shares and expected to fill his order early on Tuesday. When U.E.B. issued a" “don’t sell” warning to. shareholders in an announcement to the Stock Exchange before morning call on Tuesday, the buyer was still thought to be 1.5 million shares short of his target. ’ The buyer refused to go' above the prices offered shareholders on Monday ’ 101 c for ordinary 9oc for 12 per cent specified preference shares, and 60c for 15 per cent specified preferences—and rhe possibility of a bidding battle evaporated,