Carter Holt has good result

Press, 1 June 1981, Page 8

Carter Holt has good result

Carter Holt Holdings, Ltd, capped its most exciting year with a good profit increase. The directors announced late on Friday night that the unaudited group net profit for the year ended March 31 rose 46.8 per cent to $13.8M.

The comparable figures after exclusion of extraordinary non-trading items are $10,865,000 for this year compared with $8,199,000 for last year, reflecting an improvement in trading of 32.5 per cent. The result also allows for a tax provision of $2,051,000 (last year $479,000). Group sales at $173,287,080 were 7.1 per cent ahead of last year’s total of $161,758,000. Significant increases were achieved in the New Zealand market with total domestic sales at

$101,386,000 being 14.5 per cent up on the previous year’s figures. Export sales at $71,901,000, although 1.8 per cent down on last year’s figures, represented 41.5 per cent of total sales for the year. The small drop in exports was occasioned by a change: in the incidence of catching and shipping of certain fish exports rather than by any major change in trading patterns.

This year’s net profit includes export tax credits, of $4,211,000 ($5,025,000) and depreciation of $5,102,000 has been provided for compared with $4,892,000 last year. Working funds utilised in stocks and debtors were kept under tight control, resulting in very little increased ab-

sorption. This, together with; capital expenditure at a level comparable with the previous year, enabled the maintenance of a satisfactory positive cash flow, the directors said.

As special business at the tenth annual general meeting to be held on July 24, 1981, the directors will recommend that the authorised capital of the company be increased from $25,000,000 to $50,000,000. The directors will also recommend to. shareholders at that meeting that the articles of association be amended to enable shareholders who so wish to elect to receive dividends from revenue profits in lieu of dividends or distributions from all capital sources, and not just the share premium distribution account as at present, and to enable the directors to make bonus issues without awaiting. a general meeting of shareholders.

They will also recommend a final dividend of 10 per cent,' that fe 10c a share, which together with the interim dividend paid, will make a total payment for the year of 20 per cent (20c a share).

The final dividend is again recommended for payment from the share premium distribution account except to those shareholders who elect to receive payment from revenue profits.

Both the interim and final dividends have been paid or provided for on the capital increased by the bonus issue of line' for three in September. There was no increase in the capital of the company during the. year under review other than that bonus issue. In monetary terms the ordinary dividend this year amounts to $3,625,079 by comparison with $2,825,124 last year — an increase of 28.3 per cent. Dividend cover this year is three times. Last year the cover, was 2.9 times. The Tinal dividend is payable on July 27, ex dividend July 10.

. The directors say that they take this further opportunity to express their satisfaction at the successful outcome of negotiations to acquire the Feltex interest in Henderson and Pollard, Ltd. The company has. the option ,if it so wishes to satisfy the consideration by the allotment of shares.

As advised, this' interest together with other shares held, now gives Carter Holt a stake of 30 per cent in the capital of. Henderson and Pollard. This acquisition is regarded by the directors as a valuable long term rela-. tionship and of real strategic value to the future benefit of both organisations and their shareholders. -. ’