Commercial

Press, 22 November 1980, Page 18

Commercial

' Carter Holt Holdings, Ltd, has lived up to the expectations of its directors at the time of the now-aban-doned Fletcher takeover, and has reported a considerable improvement in the first half-vear. The unaudited after-tax profit rose 55.5 per cent to §4.466,000, compared with $2,872,000. in the six months to September 30. i The result is after providing $5OOO more for taxation at $77,000, and extraordinary items of 5629.000, compared with $200,000. The total turnover rose 21.9 per cent to 587.25 M. compared with $71.55M, and exports at $36.5M were 41.9 per cent ahead of last year's figure of 528.2 M, and made up 39.5 per cent of total sales.

“Trading income for the six months increased significantly over that of last year, but at the same time there has been a small decrease in the benefit arising from export tax credits. “This reduced benefit, despite higher exports, arises from legislative changes, applicable to the fishing industry, which became effective from April 1 this year. As a result of these

factors the proportion of total profit contributed by export tax credits has reduced from 57.6 per cent last year to 27.6 per cent this ; year.

"It is not expected that the rate of increase reported now over last year’s first half will earn' through for the full year. Last year the rate for the second half escalated rapidly as a result of the introduction of additional fishing capacity, and the benefits arising from the increased catch level.

“This means that profit contribution this year will be more evenly spread. Your directors anticipate that the final result for the full year will compare favourably with the final figure reported for the last financial year.

The directors have declared an interim dividend of 10 per cent (1979, 9 per cent) payable on December 18, on bonus-increased capital of SIB.IM. The dividend is payable from tax-free sources unless the shareholders have elected to receive payment from profits.

“An early start is expected to the proposed Pan Pac expansion and conversion to TMP to be com-

pleted by niid-1982.’’ the directors say.

"Completion of the project could see production lifted by 70,000 tonnes to 270.000 tonnes annually. This compares with earlier reports of expansion of 40.000 tonnes. The total cost will approximate dollars

“Arrangements for the financing of these capital requirements would be on similar terms to past investment in Pan Pac, and there are no specific plans in mind at this time for increasing the equity capital base of either Pan Pac or Carter Holt Holdings. "Carter Holt forests will play an important part in raw material supply in future years,” the directors say.