Harvey has good half

Press, 21 November 1981, Page 17

Harvey has good half

The directors of Alex Harvey Industries, Ltd, announce that for the six months ended September 30, the company has attained a net profit after tax and minority interests of $11,328,000.

The profit for this half year, which is unaudited, includes for the first time an equity share of the undistributed profits of associated companies. In total the result represents an increase of 87.7 per cent when compared with an equity-adjusted profit of $6,034,000 for the corresponding period last year. Group sales at $198,399,000 were 31 per cent ahead of last year’s total of $151,007,000. The contribution from manufactured exports has continued to increase and sales of $29,327,000 F. 0.8. were 27.3 per cent ahead of the same period last year. The result was achieved after providing SI.3M more for depreciation and mortisation at SS.BM and before extraordinary write-offs at $21,000 ($46,000).

The comparative result, in 1980 was affected by a number of adverse factors in this six-month period and the marked improvement this year was forecast at that time after the correction of problem areas, and considerable investment in new equipment for both traditional and new products, the directors say. During the six months the demand for the company’s products has been buoyant in all areas with growth being achieved in real terms by

most plants. With the group cost structure now geared to the lower volume in real terms experienced in the domestic market in . 1980-81 and with improved operating efficiencies that are being achieved, the company is well placed to take advantage of the present improvement in trading conditions which are expected to continue through the end of this financial year. The directors have declared an interim dividend of 10 per cent (10c a share) for the half year, an increase of 2c a share compared with last year’s interim. This dividend, which is payable on January 28 will be paid on the capital increased by the recent' cash issue to $48,000,000 ($3,256,840). The trading activities of Canterbury Timber Products, Ltd, and the Dimet and Macblast divisions are not included in the group results for this period. Since the beginning of this financial year a number of new investments have been undertaken:—

(1) Acquired as subsidiary companies — Coverall Industries (N.Z.), Ltd, 100 per cent, Vacation Hotels, Ltd, 50.6 per cent.

(II) Purchased 23 per cent of tne issued capital of Carter Holt Holdings, Ltd; (III) Purchased the assets of the Dimet and Macblast divisions of Actec (N.Z.) Ltd (IV) Purchased 28.15 per cent holding in Canterbury Timber Products, Ltd, recently increased to a 50 per cent holding.