Equity loss curbs Marac profit

Press, 10 November 1981, Page 36

Equity loss curbs Marac profit

Marac Holdings, Ltd, has announced a consolidated and unaudited operating and equity profit after tax of $2,320,000—a rise of 6.4 per cent on the $2,180,000 recorded in the same period the previous year. Tax provided was $3,431,000 ($2,133,000 the previous year). An equity share of a net loss of $1,640,000 recorded by associated companies is also included (nil for the same period the previous year). Total assets employed of $585,000,000 ($507,000,000 .at March 31, 1981)include security buy-backs, discounted bills of exchange, and letters of credit totalling $78,000,000 ($61,000,000 at March 31, 1981).

An interim dividend of 11 per cent (10 per cent last year) on incressed dividendranking capital of $16,250,000 will be paid on January 5. The full amount of the dividend, $1,787,500, will be payable tax-free from the share premium reserve unless share holders exercise their continuing right to elect to receive dividends „• from revenue reserves. . ' The directors say the

result does not fully reflect the strong performance of wholly-owned operations, which increased their contribution to profit by 92 per cent to $3,960,000. The equity losses recorded by the group’s associated companies offset this increase to a large extent. A major part of this deduction from profits was attributable to Marac Finance Australia, Ltd (50 per cent owned by the group) where an abnormal level of bad debts was brought to account. The directors say the tax benefit on this loss has not been recognised in. the accounts but it is expected to be realised from the recoupment of those losses in future years. A diminishing rate of loss is expected for Marac Finance Australia, Ltd. The outlook for the second half of the financial year is for an improvement of profit on that recorded for the first half, with a continuation of the strong performance of wholly-owned subsidiaries, and a reduction in the level of associate company losses.