TNL nine-months profit higher

Press, 28 May 1983, Page 19

TNL nine-months profit higher

TNL Group, Ltd, showed a profit of $6,030,000 in the nine months to the end of March, compared with $5,791,000 the previous year, the directors said in a statement.

They said that the profit was achieved “in the face of difficult trading conditions resulting from the international and domestic recession.”

Last year, non-recurring profits amounting to $240,000 arose from depreciation recovered from

the disposal of assets in discontinued lines of business, making the 1982 net profit before extraordinary items $6,031,009. The results include the estimated share of profits of associated companies. In addition, extraordinary profits of $1,826,000 (last year $2,007,000) were received during the period' giving a consolidated net profit of $7,856,000 (last year $8,038,000). Revenue amounted to $86.2 million compared with $67.5 million last year and $570,000 has been provided for income tax (last year $1,351,000). The group has increased its shareholding in Service Transport, Ltd, in North Canterbury and Nelson Pine Forest Holdings, Ltd, to 100 per cent and 50 per cent respectively, and sold its 25 per cent interest in Mogal Corporation, Ltd. Tne Newman tourist and coachline subsidiaries and Horizon Holidays continue to increase their share of

business from traditional and developing markets. , Major currency fluctuations have eroded tourist profit margins in the current year. Heavy expenditure on new market development is resulting in increased market share of the tourist visitor industry, so vital to the national economy. The minerals division, motor caravans and rental cars have recorded substantial profit increases and freighting has held its profitability, a major contribution under adverse economic conditions, the directors said. Total assets and shareholders’ funds now stand at $88.4 million and $46.3 million respectively (net tangible asset backing an ordinary 50c share is 165 c). The cross holdings of shares between Freightways Holdings, Ltd, and TNL Group, Ltd, have been sold by both companies, and Goodman Group, Ltd, has become a 24.9 per cent shareholder in TNL Group.