High set-up costs lower Command result

Press, 27 November 1980, Page 24

High set-up costs lower Command result

Heavy’ expenses in Austiralia. and more difficult ■trading conditions in New Zealand have reduced the net profit of Command Services Corporation, Ltd, : around 3.9 per cent in the 2S weeks ended October 13. i The directors announce in? their mid-year report a netJ < profit of $370,000 compared? . with $385,000 In the corres-> I ponding period lent year. | The provision for tax rose $lB,OOO to $300,000. and; i profit before tax edeed up; from $661,000 to $670,000,? ’from a 19.4 per cent in-' : crease in turnover to i 530.7 M. J The lowering of margins j is mainly because of more ‘ ; difficult trading conditions? in New Zealand and heavyp expenses in gearing up fori; expansion in Australia, thedirectors say. “Our policy of diversifies- 1 tion into new services inh New Zealand, and expatr.ionjr in Australia, is starting to;

• bear fruit. Substantial profit increases in ' both these sectors over the correspondi ing period last year were recorded. Today over 30 per: cent of our turnover is in? i Australia.and we are actively seeking to increase this? [ through both acquisition and; 'natural growth," they say. ' The directors have decJar- ! ed an interim dividend of 4c :a share, payable on December 12. ! To comply with certain! ; audit requirements which! have to be met by the ma-: liority shareholder the board) jhas decided to chance thej ibalance date from March 31 i j to December 31 effective! : from December 31.' Ac-1 :cordinglv the current finan-'! cial year will be for 9 months only. Two weeks ago Pritchard Services Group. Ltd. of J London, obtained a major: shareholding in the Command group. "It is planned that the

tj final audited accounts for • the 9 months to December -pl will be completed to • enable the annua: general r: meeting to be held during ijMay. and the directors -expect being able to recom;jmend to that meeting a final Il dividend for the 9 months which will, with the interim - dividend now declared, give : a total dividend for that 9 months at least propiortionate to the total diviidend declared for the vear /ended March 31. 1980.” •i ■ Thereafter it is proposed I that interim dividends will :jbe paid in September (the {first in September next) and (final dividends in. May of