Merged group performs well

Press, 29 May 1982, Page 20

Merged group performs well

PA Auckland James Hardie Impey, Ltd, has finished its first period trading under its new name with a seven-month profit three times higher than that achieved in the last year as Phillips and Impey, and has exceeded pre-merger forecasts.

Net operating profit for the seven months to March 31 before extraordinary items reached $5,804,000, compared with $1,840,000 reported in the year to August 31 last

Adjusted to six months the interim profit becomes which compares with $1,069,000 for the premerger February first half last year. The directors say that, because of the effect of seasonal operations, it is not possible to make a wholly accurate comparison between the latest result and

those for the year to-August 31. However, taking into account the various factors affecting profits in the seven months, annualised earnings are estimated to exceed 40c a share.

The company has changed annual balance date from August 31 to March 31, after the major New Zealand subsidiaries of James Hardie Industries, Ltd were acquired for 15,572,825 James Hardie Impey shares last September.

A first and final dividend of 9.25 c a share (18.5 per cent) for the period to March 31 is proposed, equalling total dividends for the year to August 31 in accordance with the merger document.

It is payable July 13, ex July 1. The annual meeting in on July 13.

The result was achieved on sales for the seven months of

$54,021,000 (compared with $26,768,000 for the year to August 31). The profit before tax is $9,125,000 ($3,262,000 to August 31), with a tax provision of $3,321,000 ($1,422,000). Extraordinary losses of $15,000 ($128,000 in the previous full year) produce a final profit of $5,789,000. Adjusted to six months this becomes $4,962,000 against $1,712,000 in the August 31 year. The profit includes $2OOO (last year $211,000) in net equity profit from associated companies. Interest paid or payable for the period is $499,000 ($447,000). The number of issued shares stands at 21,704,286, against 6,131,461 in the premerger August 31 year. The directors say the change-over period makes fair comparison difficult, but all of the enlarged group’s businesses performed well. The merger had been highly successful with profit

exceeding forecasts made at the time of merger. The fibre cement division recorded increased sales volume which, coupled with continuing cost control, resulted in an excellent contribution to profits. The building products division which includes Phillips and Impey’s traditional paint manufacturing and retail operations. Polycell Products, and Wilson Fabrics and Wallcoverings, also traded well with sales volumes up- and margins maintained. Trading in the early months of the new financial year had continued strongly. The directors say that earnings a share of 26.74 c for the seven months (or 40c annualised) compares with 30c for the year to August 31, and with 31.66 c quoted in the merger documents as an estimate had the merged group operated for a year to March 31, 1981.