Brierley profit $6.8M

Press, 18 October 1980, Page 19

Brierley profit $6.8M

PA Wellington A large profit increase plus a cash issue in November and. a bonus issue in January next year were announced yesterday by Brierley Investments, Ltd. The profit was $6,821,000 as against $4,357,000 last year, and was largely because of Australian operations. The cash issue will be one-for-eight at a premium of 150 c, and the bonus issue in January will be on the basis of one-for-three (including the new issue shares). The final dividend will be 11 per cent, making a total of 20 per cent for the year. The company said yesterday that for the 1980-1981 year it is proposed to pay a dividend of at least 16 per cent on the increased capital. Allowing for the preference dividend of $103,000, the dividend is covered 4.5 times. The gross profit increased 58.1 per cent to $25.1M: the charge for depreciation, at $4,073,000, was $1,099 higher, and the

provision for tax ' rose $2,195,000 to $3,554,000. Minority interests took $2,050,000 more at $4,368,000, and the share of outside interests rose $1,434,000 to $6,331,000, leaving the net profit (unaudited) attributable to the parent company 56.6 per cent higher at $6,821,000. “The strong performance of the group in a difficult economic climate was largely because of the contribution from our Australian subsidiary, Industrial Equity, Ltd, which more than doubled its previous record profit,” the directors said. “To some- extent this reflected the very buoyant level of the Australian sharemarket throughout the year but I.E.L. is well placed in its own right, and should continue progress regardless of market fluctuations.

“The New Zealand operations were affected by adversities in several areas in particular, but there also the over-all profit was a reasonably satisfactory one,” they said. “The various sources of group earnings and their relativity to the final result will be dealt with in more detail in the annual report.

“Based on indications of the current year to date there are good prospects for 1980/81, both in Australia and New Zealand. “If has been resolved to recommend to final dividend of 11 per cent (s|c a share) which makes a total of 20 per cent (10c a share) for the year. Of the final dividend, 5 per cent (2Jc a share) will be paid from tax exempt revenue reserves and 6 per cent (3c a share) will be paid from Share Premium Account to shareholders other than those who have elected to continue to re-

ceive dividends from revenue sources.

Since June 30 the issued ordinary capital has increased $309,517 to $7,848,400 as the result of the successful completion of the take-over of Cyclone Industries (N.Z.), Ltd, and an issue of shares of staff. It has been resolved to increase the issued ordinary capital from $7,484,400 to $11,772,600, by a 1:8 cash issue of 50c shares at. 200 c each in November and a 1:3 bonus issue in January. “In the 1980/81 term it is proposed to pay a dividend of not less than 16 per cent on the increased capital. The cash issue shares will rank equally in all respects with existing shares and will participate in full in dividends declared in 1981. The' bonus issue shares will not qualify for the interim dividend in 1981 but will rank 'pari passu’ x thereafter,” the directors say.