Elders’ record profit reflects success of mergers

Press, 11 October 1982, Page 29

Elders’ record profit reflects success of mergers

PA Adelaide The diversified rural investment and food giant. Elders IXL. Ltd. posted a record annual. profit of sAust6l.3 million for the year to June 30. reflecting the success of the group’s mergers throughout the trading period. The result represents a 78 per cent increase in last year's profit of sAust34.4 million on an increase in turnover of only 11 per cent to $2770 million, from $2460 million last vear.

The group secretary. Mr C. E. Parken. said that the results included for the first time seven months trading of the Henry Jones IXL group and three months of Wood Hall. Ltd. both of which were acquired by Elders during the year.

Mr Barken said that the integration of the three groups had progressed very satisfactorily and placed the enlarged group in a sound position to handle the challenges of the current widespread drought in Australia:

The directors lowered the group’s final dividend to 10c from 12.5 c last year, but this year's dividend is payable on capital increased by a one-for-two bonus issue in May.

The 10c payout brings total dividend for the year to 17c compared with 17.5 c paid last year:

However. Mr Parken said that the amount was equivalent to a 25.5 c payout bn prebonus capital.

He said that all divisions of the group performed well in a difficult year, with profit increases created by

the integrating activities and the freeing up of surplus assets, a process which he said will continue into the current year. Revenue from trading income climbed to $72.5 million from $49.5 million last year.

Mr Parken also said that efforts are now being concentrated on improving the group’s efficiency and in providing better services to customers and suppliers.

The group benefited from a sharp rise in investment and other income which soared to $5.4 million dollars from $2.9 million in the previous year; sales of surplus assets reaped $7.6 million compared with $7.1 million.

Tax payments rose to $22.2 million, from $20.4 million.