Donaghys profit rises 31p.c.

Press, 31 October 1981, Page 19

Donaghys profit rises 31p.c.

The unaudited net profit of Donaghys Industries, Ltd, rose 30.9 per cent to $1,145,687 in the six months to September 30, the directors announced. The provision for tax was $538,339 compared with $515,145 for the same period last year.

“As emphasised in previous half-year announcements, the trading pattern of the company is largely influenced by seasonal factors affecting the primary industry sectors, which are important markets serviced by the group,” they say. Therefore, the profit reported for the half-year does not necessarily reflect the expected results for the full year, the directors said. “Although there has been a significant improvement in the domestic market as a result of greater economic

buoyancy, the profit for the reported period mainly reflects the continuing achievement of export growth.

“This is currently 68 per cent higher than the same period last year, and is confidently expected to show further increases in the future. Sustained efforts in establishing overseas market associations now provides the company with both the capability and opportunity of expanding exports covering a broad range of manufactured products. Current plans are also in the course of development, which are aimed at further increased export activity.

“As indicated in the 1980 annual report, action was taken last financial year which could result in substantial funds being available for tax-free distribution' to shareholders.

“Although this is still subject to Inland Revenue Department approval, it is believed that if departmental rulings are to be consistent, a favourable decision will be forthcoming.

“However, if this is not successful, as an alternative, the board has given consideration to the possibility of further bonus share issues which would be dependent upon, and relate to, increased profit performance.

“To this end, the board has resolved to call an extraordinary general meeting to amend the articles of association to give power to the directors to make such bonus issues without the necessity of convening a shareholders’ meeting, as well as incorporating certain other amendments to enable the articles of association to

conform with stock exchange listing requirements.

Last week the directors became aware of substantial purchases of shares by Brierley Investments. Ltd, and it was their opinion that these acquisitions would not be in the best interests of other shareholders. The directors advise that the shareholders have now been adequately informed to make their own decisions, and consequently an earlier “don’t sell” warning is formally withdrawn. The board has approved a payment of an interim dividend of 4.5 c a share (9 per cent) compared with 7 per cent for the interim dividend last year. The board expects that should the level of business continue to improve, the final dividend wil be at least the same as last year. The interim dividend will be paid on January 29.