Restructuring key to Hawkins performance

Press, 21 July 1982, Page 23

Restructuring key to Hawkins performance

PA; , Hamilton Although many construction companies have found the last two years tough onps, Hawkins Holdings, Ltd, of-Hamilton, has expanded arid topped the $1 million profit ' mark for the first time, the chairman (Mr Ross Jansen) says in his annual

report. That profit was more than 300 per cent better than last year’s and almost 50 per cent better than the .company’s previous best of. $671,208 in 1979. ■ The directors will recommend to the annual meeting on( August’ 5 that a final ordinary . dividend of 6 per

cent (3c a share) be paid, bringing the total dividend/ for the year to 13 per cent (6.5 c a share). - Subject to High Court permission the final dividend will be paid from share premium reserves and ac-. cordingly will be tax-free in shareholders’ hands. The group’s after-tax profit was $1,180,792 (up from $391,790 last year), and the retained profit after dividends and appropriations to the capital replacement fund was (5144,296). The dividend is covered 3.6 times by the profit, the highest cover since 1978, when it was covered 4.2 times, plunging to a low of 1.5 times in 1980. • Mr Jansen attributed the company’s excellent performance partly to the restructuring of the firm five

years ago, when further subsidiary . companies were formed which previously operated as divisions of the company. “Management responsibility and profit incentive . proved to be major results of that restructuring,” he said. “Those few subsidiaries which have not performed well were disposed of. “Other operations have been established or acquired and are performing well:” Mr Jansen said that the company’s role in energy development, particularly in Taranaki, was proving of benefit to the company. Meanwhile, Mr Jansen said that it may not be possible to have ready for the annual meeting any specific response to x McConnell Dowell, Ltd’s proposal that the two companies merge.