DIC profit falls again

Press, 4 June 1982, Page 19

DIC profit falls again

Sales of the DIC, Ltd. for the six months ended February 28. at $26.02 million decreased fractionally when compared with the ’ sevenmonth period last year. Sales for the six month period increased by $2.53 million or 10.7 per cent, the directors announced. . Group net profit amounted to $91,000 as compared with $153,000. Extraordinary costs last year amounted to $397,000. this year nil. There is no liability for taxation. Priority is being given to improving utilisation of fixed assets, rationalisation of trading activities, reduction of indebtedness and improvement of liquidity. Favourable

arrangements have been concluded for the lease of store' space surplus to requirements under current planning. This will release substantial funds to improve both liquidity and earnings. Further details will be advised as soon as practical. “Consequent upon this ahd the better prospects generally. the directors feel justified in declaring an interim ordinary dividend of 7c a share which will be paid on June 21. This will be paid from tax-free sources to those shareholders who have not otherwise elected. “The directors' opinion is that in the absence of any

legislative changes this dividend is tax-free in the hands of shareholders. The Inland Revenue Department has indicated that they da* not share this view. "The analysis of trading reveals that most stores are now headed to realistic profit targets and specific areas requiring attention are being firmly addressed. “Sales for the two months ended April 30 have increased 19 per cent over last year and given a continuation of this and the other trends, projections are for a much improved trading profit for the second half of the year.