Mainzeal profit doubled

Press, 18 March 1983, Page 10

Mainzeal profit doubled

The unaudited group profit of Mainzeal Corporation. Ltd, for the six months ended December 31, on an equity-accounting basis after tax but before extraordinary items, was $735,214 compared to $358,097 in the corresponding period in the previous year. Earnings a 50c ordinary share were 34.6 c (1981 -16.2 c) for the six months. Turnover rose 9.1 per cent to $44.5 million. In addition, extraordinary profits of $1,388,000 were realised on the sale of the group’s investment in the former associate company, Fletcher-Mainline Limited. Subject to the approval of the Inland Revenue Department, the amount of this

capital gain will be available for subsequent tax-free distribution to shareholders (1981 - $25,000). The reported results incorporate a change in the accounting policy by which profits on long-term contracts are recognised. The effect of this change is to delay the timing of the recognition of profits and this has resulted in a prior period adjustment, which reduces retained earnings $377,461 (1981 - $146,513).

The directors have declared an interim dividend of 3.5 c a share, payable taxfree to shareholders, from realised capital reserves, on April 29 (1981 —3.5 c taxable), ex dividend April 15.

Ordinary shareholder;' funds at December 31 totalled $5,428,000 (1981 - $3,644,000) representing a net tangible asset backing of 264 c a 50c ordinary share (1981 - l"8c).

The value of forward work yet to be undertaken totalled $60.4 million (1981 — $63.3) at December 31.

Although the over-all economic situation has adversely affected the construction industry, the group has managed to maintain its forward workload at satisfactory profit margins; the directors expect that profit in the second half of the year will be satisfactory, they say.