CBA Finance joins $1 million club

Press, 9 May 1981, Page 20

CBA Finance joins $1 million club

CBA Finance Holdings. Ltd. has broken the $1 million earnings barrier, leaping 63 per cent in taxpaid profit for the vear to March 31, to $1,401,000. The dividend is being raised. The profit, which is the company's first result under the new structure, with CBA holding 51 per cent of the former transvision, was declared after tax of $770,000 ($506,000 in 1980) and depreciation of $3,340,000 ($2,634,000). It also includes a share of associate company profits. The directors say that total assets have increased 67 per cent to $43 million with finance recievables for CBA Finance. Ltd. rising by $l3 million to $17.5 million. The television rental market experienced a “levelling out" period last year causing the group to concentrate on the finance company for growth. However, the market is now on an upward cycle, and Transvision Tele-Hire is fast

expanding the number of television sets on rental. The earning rate on average shareholders' funds has improved to 26.6 per cent and earnings for each 50c shares have jumped from 17.2 c a share to 24.8 c. , The directors also report a doubling in debenture funding with debentures increasing from $10.2 million last year to $23.2 million. The directors express interest in the results of Government action to lower interest rates and say the company “has endeavoured to resist the recent trend of higher interest rates." The company will pay a tax-free interim dividend of 5.5 c (11 per cent) on May 18. ex May 13. The Commercial Bank of Australia. Ltd. will participate in the interim dividend on its partly paid shares according to the amount paid up for the period from November 10 to March 31. This makes a dividend of 1.4 c. This dividend and the in-

terim dividend in Dcwim-v, total 10c (20 per cent) for the 12-month period The group has altered its balance date and will report again to shareholders at the end of the 15-month period to June 30. The directors sav thev expect a final dividend of‘3c (6 per cent) for the three-month period, pavable in October This will give a total of 13c (26 per cent) for the 15 months, which equals 10.4 c (20.8 per cent) on an annual basis compared with 7.5 c (15 per cent) in the 1980 vear