Ajax dividend raised to 22%

Press, 14 August 1980, Page 18

Ajax dividend raised to 22%

Ajax G.K.N., Ltd, Lower Hutt-based fastener manufacturer, announced an 8.8 per cent profit increase, but also plans for a major income boost for shareholders. Dividend for the year is being increased from 17 per cent to 22 per cent—all taxfree. The profit and dividend growth has seldom been spectacular in recent years, but the company revealed a more generous dividend policy last year when the payout was boosted from 13 per cent to 17 per cent, with an 8 per cent tax-free element. The latest 22 per cent tax-free payment means that for some shareholders this year’s effective return is almost double that of 1979. The latest profit returns a solid 61 per cent on capital, which covers the dividend 2.8 times. The tax-paid profit before an appropriation for plant inflation increased 8.9 per cent, from $1,852,000 to $2,018,000. The plant allocation rose from $245,000 to $269,000 leaving a tax-paid balance of $1,749,000, .$142,000 more

than, last -year. The tax provision rose $19,000 to $1,488,000. The profit was after 9.5 per cent higher sales, from $15.6 million to $17.0 million, which included a volume increase of around 4 per cent, the directors said. But export sales were the highlight of the year, increasing 137 per cent from $542,000 to $1,286,000. The final dividend of 14 per cent —the interim was increased from 6 per cent to 8 per cent—will be paid on October 28. The directors noted that, compared with the results for the first six months, the year’s efforts "reflect a decline' in both volume and profitability over the last six months.” At the half year, the company reported a 14 per cent profit increase from $749,000 to $856,000, but the directors said at the time that a reduced demand was likely to reduce profitability in the second half. As it turned out, the second six months saw a small increase from $858,000 to $893,000.