Radio Avon doubles profit

Press, 18 November 1981, Page 25

Radio Avon doubles profit

Radio ■ Avon, Ltd, doubled unaudited tax-paid profit in the six months ended September, from $41,883 to $85,4i8, the chairman (Mr P. L. Mortlock) announced yesterday and today. The net profit included a share of profits of two associated companies, Radio Otago, Ltd, and Lake Ohau Ski Field Ltd, and two extraordinary items. A share of losses of Foveaux Radio, Ltd (25, per cent owned) for the six months to September 30 was not debited.

“Foveaux Radio was on air for only about five months during that period and it would have been misleading to bring in a share of those losses, part of which could be properly capitalised as pre-going-on-air expenses,” Mr Mortlock said. The share of the retained profits of Radio Otago for the six months to May 31 was $4154, and the share of profits of Lake Ohau Ski Field for the year to October .31 was about $7OOO. Mr Mortlock said that

Radio Avon did not have-a major share investment in Radio Otago during the comparable period last year. He said that the Ohau ski season closed within days of September 30 and it was desirable to bring in a share of Ohau's profits or losses at the half year. Last year $13,017, being the share of Ohau’s losses for the 1980 year, and $BlOO, the write down in the value of the shareholding in Ohau were debited against year-end profits, and these amounts

have been deducted in arriving at the comparative profit figure of $41,883 for the same period last year. • The major extraordinary item was a write up of $15,601 in the value of- the investment in land and building at 155 ' Kilmore Street, Christchurch. Mr Mortlock said there would be a further write up of the same amount in respect of the last six months of the financial year so as to bring book value for the investment in land and building to a value based upon the Government valuation as at July 1, 1979. The other extraordinary item was a capital profit of $1294 on the sale of a computer. Broadcasting and investment revenue of $BOB,OOO was down 1.5 per cent on last year’s figure of $820,000. Expenditure of $703,700 was down 0.2 per cent on last year’s figure of $705,150. After providing $46,900 for tax (last year $51,850) net profit, before adding profits of associated companies and extraordinary items, was $57,400 — a fall of 8.9 per cent on last year’s $63,000. Mr Mortlock said that an interim dividend at the unchanged rate of 5c a 25c share (20 per cent) would be paid on December 5, books closing 5 p.m. November 27.