Excellent result

Press, 3 December 1982, Page 17

Excellent result

ICI New Zealand. Ltd. Wellington-based manufacturer. importer and marketer of chemical and related products, increased audited equity net profit 22.1 per cent in the latest September 30 year after an increase in external sales of 16.1 per cent.

Yesterday's report to the stock exchange - the directors say that they consider the result satisfactory -

shows that net profit was increased from 58.021.000 to $9,797,000 with the profit before tax up 28.9 per cent, from 514.500.000 to $18,691,000. External sales for the year increased $31.2 million to $225.5 million (from $194,297,000). A final dividend of 11c a share will be paid from profits (taxable) on February 10. the annual meeting being

on February 3. This is the maximum payout permitted under the "freeze" regulations. This dividend, together with the 8c a share interim, makes a total for the year of 19c, equal to the total for the previous year. The ratio of trading profit to sales improves from 8 to 8.8 per cent; the return on average shareholders' funds moves up from 13.6 to 15.1 per cent: earnings a share increased from 45.7 c to 55.9 c; and the dividend is covered 2.9 times (2.4 times in 1981).

In their report the directors say; “The group results showed considerable improvement over the previous year, with the general upturn in business activity experienced in the first half of the year continuing through to the end of the financial year. Further growth was achieved in export sales, because of

the development of new products and additional overseas markets.

“During the year, a major programme was begun to increase the production capacity of animal vaccines and to expand group research and development facilities.

“A disappointing feature of the year was the need to announce the closure of CAC Industries. Ltd. after unsuccessful efforts had been made to return the business to profitable trading. A provision of $1.4 million has been made in the group accounts to cover redundancy and other closure costs'. The closure of the Fibremakers business was completed during the year, but the land and buildings at the Wiri site have yet to be sold." the directors sav.