C.F.M. hands it out after bumper result

Press, 28 October 1981, Page 26

C.F.M. hands it out after bumper result

Canterbury Frozen Meat Company, Ltd, is planning a one-for-eight bonus share issue, and an increase in dividend from 18 to 20 per cent, after a bumper result in the latest financial year. The final dividend of 12c a share will also be paid on the bonus shares, making the effective dividend rate 21.5 per cent.

The audited profit for the year ended August 31 was $5,894,000, after charging as an'. expense against profit extraordinary items amounting to $1,246,000. The profit for the previous year was higher at $6,203,000, but that figure included a credit' of $1,546,000 from extraordinary items.

The operating profit increased to $10,988,000 (com-

pared with $6,419,000 in 1980) and was arrived at after charging depreciation $2,587,000 (previous year $2,449,000).

Taxation amounted to $3,887,000 ($1,727,000 in 1980) and minority interests shared a loss of $39,000 (profit $35,000 in 1980). “This is an outstanding performance,” said the chairman (Mr I. E. O. McKellar) who announced the result yesterday. “It reflects the record levels of sheep and lambs processed through the works last season, and the harmonious industrial relations that have enabled the company to fully utilise its facilities. Export meat trading made a significant contribution to the result, fully justifying the decision to reenter this area.”

The directors are recommending a final dividend of 12c an ordinary share. Unless shareholders have elected otherwise, the dividend will be paid from realised capital profits which will be tax-free in their hands. This brings the total dividend for the year to 20c a share. The final dividend, when approved by shareholders at the annual general meeting, will be paid to those on the register at 5 p.m. on December 8.

In addition, the directors are recommending a bonus issue of one ordinary share for every eight ordinary shares held on that date, and these shares will also qualify for the final dividend.

The annual general meeting will be held on December 14.