Rex dividend up, 1:5 bonus issue, after 36.8 p.c. profit increase

Press, 19 May 1982, Page 30

Rex dividend up, 1:5 bonus issue, after 36.8 p.c. profit increase

Rex Consolidated, Ltd. is increasing dividend from 20 to 23 per cent, and making a one-for-five bonus issue, after an increase in unaudited group net profit of 36.8 per cent to $2,465,572. The directors say that, in addition, extraordinary items for the year ended March 31. totalled $90,964 (previous year — nil).

The profit was after providing $125,630 more for depreciation at $700,963, and $250,662 more for tax at $911,355.

Sales rose 28.0 per cent to $28.7M. The return on capital diluted by notional conversion on specified preference shares rose from 40.8 to 54.2 per cent the directors say, and the return on average shareholders’ funds increased from 18.3 to 19.0 per cent. Ordinary capital increased during the year by $300,000 reflecting the issue of shares for the acquisition of a property. Total shareholders' funds rose by $2,380,713 to $14,618,939 reflecting the $300,000 issue of ordinary capital, the premium on those shares, and retained profits after provision for dividends.

The directors regard the year’s results as a very satisfactory achievement to which all major divisions contributed, despite conditions which were at times challenging. Increased emphasis was placed on the installation of the latest highly sophisticated machinery so as to maintain the production of high quality goods in all manufacturing plants. The overseas companies in Australia and South East Asia have traded well, and consideration is currently being given to a further expansion of activities to cater for the attractive Asian markets, they say. “This is the 21st year of

Rex as a public company, and the directors have resolved to recommend to the shareholders that the occasion be marked in the following manner:

In November, 1981, the company paid an interim dividend of 10 per cent (last year 9 per cent). The directors now recommend a final dividend of 13 per cent (last year 11 per cent), making a total for the year of 23 per cent (last year 20 per cent). The distribution proposed is covered 2.68 times after providing for specified preference entitlement.

The directors also recommend a bonus issue out of capital revaluation reserves in the proportion of one fully-paid' bonus share of 100 c for every five ordinary shares held. This will absorb $795,148 and raise issued ordinary capital to $4,770,888. Provision will be made to reserve the appropriate number of bonus shares for issue to specified preference shareholders when their holdings convert to ordinary shares in terms of the issue conditions. The bonus shares will not participate in the final ordinary dividend of 13 per cent payable on July 22. The directors expect to maintain the current rate of dividend on the higher ordinary capital after the bonus issue.

Transfer books will close from July 19 to July 22, both days inclusive, to determine entitlement to both the dividend and the bonus issue.