Chenery pays more

Press, 19 December 1981, Page 22

Chenery pays more

PA Auckland Chenery Holdings, Ltd, is raising interim dividend rate from 8 per cent to 10 per

cent after returning a 25.8 per cent-lower net profit of $336,258 in the six months to September 30.

The directors say that the reduced profit is principally because of the conservative accounting treatment of one substantially completed major contract, for which all known or possible losses have been provided.

For the full year, the company is budgeting for a profit of $750,000, which will cover a continuing 20 per cent annual dividend at least 2.75 times.

The latest profit includes a contribution from a recentlyestablished associate com-

pany, and is after tax $127,515 lighter at $97,321.

Turnover for the half was in excess of that for the previous corresponding period and directors expect to be able to recommend the payment of this year’s final dividend from tax free sources.

In the year to March. Chenery earned a 70 per cent higher record profit of $813,546 and increased divi-

dend from 15 per cent to 2( per cent.

In his annual review in June, the company's chairman (Mr H. S. Rose) expressed reservations on the short term outlook for contracting.,