Taylors bonus proposed

Press, 17 June 1982, Page 22

Taylors bonus proposed

Taylors Drycleaning and Laundry Services, Ltd, proposes to make a one-for-eight bonus issue, after increasing its unaudited group net profit 26.5 per cent to $239,000 in the year to March 31, the directors announced in a preliminary report yesterday. The result included three months trading from Executive Holdings, Ltd, the Auckland private laundry company, which was taken over by Taylors in January. The directors said that they were confident that the

current level of profit would

be maintained in the future. Sales rose about 20.5 per cent to $5.4 million, and the profit was after providing $57.01)0 more for tax at $200,400. A recommended final ordinary dividend of . 7c a share gives an unchanged annual rate of 14c a share (14 per cent), 2.5 c a share of which is tax free. The dividend is payable on August 24, ex dividend on August 11. The directors said the proposed bonus issue would be made partly from tax-free

sources and partly from retained earnings, and would be submitted to the annual meeting on August 24 for approval. The bonus issue would not participate in the final dividend bnt would rank equally thereafter. The ex bonus date is August 25. The convertible specified preference shares would also receive the bonus issue on conversion, in addition to the previous bonus issues of December, 1978, and May, 1981.7.

“They will now be entitled to 31.5 ordinary shares for every 20 convertible specified preference shares. The conversion takes place on October 1."

Barring unforeseen circumstances, it was intended to maintain the present 14c a share dividend rate on the higher capital, the directors said.

It was also proposed to increase the authorised capital from $1 million to $2 million to provide for further development, and this recommendation would be submitted to the annual meeting