H. Smith 1:4 bonus

Press, 4 March 1981, Page 19

H. Smith 1:4 bonus

NZPA Sydney After record results from sugar milling activities and a 47.6 per cent increase to sAust24.4M in the group net profit in the year to December 31. Howard Smith; Ltd, will make a one-for-four bonus issue. The turnover of the shipping, sugar, and coal group increased 138.4 per cent to sAust36o.7M. The directors said that sugar provided the main contribution towards the results. Buoyant overseas prices and benefits from investments in recent vears in new plant, combined to produce record

. results despite difficult trading conditions. The outlook for sugar in the current year was also good, they said. The final dividend of 17.5 c a share makes the annual payout an unchanged 22.5 c a share (22.5 per cent). The final dividend is payable on April 24. Tax for. the year increased to $16.3M from S6.BM, interest eased to SI.IM from SI.4M. and depreciation rose to slo.6M'from $7.9M. Although a breakdown of the results of individual operating divisions was not given, the directors said that

coal contributed a net loss which was “extremely disappointing considering the huge capital investment in this sphere.” They said that depressed prices combined with industrial turbulence stretching from the coal fields to the loading port were key factors in the depressed New South Wales coal mining scene.

The outlook for the current year was brighter with contracts prices due for renegotiation and sound reasons existing for buyers to agree to substantial price rises with escalation clauses, the directors said.