Transvision well ahead

Press, 23 October 1980, Page 19

Transvision well ahead

Transvision Holdings, Ltd. in which -the Commercial Bank of Australia is becoming the major shareholder, has announced 130 per cent increase, in .the unaudited • group net profit of v $608,000 in the six months to September 30. In their announcement, the directors have declared an interim dividend of 4.5 c a share (9 per cent), an increase of 2c a share. Further, the dividend payable December 1, ex-dividend November 13, will be tax-free. (During the year the 100 c shares were split into 50c units.) Excluded from the payment will be new shares to be issued to the CBA. The dividend covered is 2.7 times compared with 2.1 a year ago. The profit increase is particularly noteworthy because it was achieved bn receivables and securities which rose by the lesser figure of 46 per cent to $8.6 million, and the company television receiver inventory is given an added valuation of only 1 per cent at 516.9 M. Total assets and shareholders’ funds in each case increased bv 18 per cent, to $29.4M and £3.9M respectively. Deferred tax provided is $206,000, compared with a similar provision of $216,000 previously. The directors said that the earnings rate on average shareholders’ funds moved to 32.5 per cent, against 25.6 for the 12 months to March 31, Earnings a share rose 2c to 24.3 c, whereas that figure was 17.2 c for the vear. The $608,000 profit, which includes a share of profit from an associated company, Cooks New Zealand Wine Ltd, 30 per cent is almost three-quarters of the way to the total $860,000 recorded for its 1979-80 year. The slight increase in television set values reflected a depreciation write-down equa-

( ting investment in new sets.l The actual number on hire had increased, the directors j said. The increase in receivables I and securities reflected in-! creased emphasis in that area. Finance receivables. had! shown greater growth than; those from television sets, and: this trend was expected to ; continue. Debenture funding had been particularly satisfactory in recent months. Such funds employed in Tranvision increased by SS.BM to 514.4 M between September 30. 1979. and the latest balance date. In a comment on the CBA acquiring a 51 per cent stake! and new shares (the bank is' awaiting the necessary authority consents in Australia and 1 New Zealand), the Transvi-j sion directors said this should: provide material benefits in assisting the group to expand, in the finance industry. As reported, while the! CBA is spending about; 59.5 M on its Tranvision entry, it also is selling its 21 percent stake in Marac Hold-j ings. Ltd, of which it was a| foundation shareholder, toi Fletcher Holdings. Ltd, fori about S6.BM. That deal, too, isj awaiting trans Tasman con-; sents.