Goodman bonus after doubled profit

Press, 3 June 1982, Page 20

Goodman bonus after doubled profit

PA . Wellington Goodman Group proposes to make a one-for-five bonus issue and pay an increased dividend after doubling unaudited tax-paid profit to $12.2M for the year ended March 31. The company also plans a one-for-eight cash issue which will raise about S9M. intended for a capital expenditure and investment programme. Announcing this, the chairman of the group (Mr P. L. B. Goodman) said that the trading and financial results achieved gave a strong financial base for the pursuit of new initiatives.

The board is recommending a final dividend of 7c a

share (6c last year) which will be made from tax-free sources. Although the new ordinary shares issued in January. 1982. qualify for only one half of the final dividend, all bonus shares Will attract the full 7c a share. After adjusting for bonus issues and excluding, the benefit of last year's. cash issue, this year's total 'dividend is effectively 17.28 c a share compared with 11.7 c last year. This year’s total dividend, including the specified preference dividend,, is covered 2.1 times.

The equity profit of $12.2M (S6.IM) was earned on sales of SIS3M (SII7M) after providing SI.4M for tax <$2M)

and $3.6M for depreciation (S3.IM). In addition, extraordinary profits of SI.IM was earned compared with $436,000 last year. No account has been taken of the $2.06M in extraordinary items reported by Wattie Industries. Ltd. for the six months to January 31. After full dilution for the convertible specified preference shares, excluding extraordinaries, the earnings a share for the year were 29.6 c compared with 18.1 c last year. Trading profits rose 70 per cent to SBM on' sales which increased 31 per cent. This increased the 'profit margin on sales from 4.1 per cent last year to 5.2 per cent this year.