Fine year for E. Adams

Press, 15 June 1983, Page 28

Fine year for E. Adams

Ernest Adams, Ltd, Christchurch-based cake manufacturer, is planning a one-for-three bonus issue after, a 68 per cent increase in tax-paid trading profit for the year ended March 31.

The directors said yesterday in a preliminary statement that sales increased 17 per cent during the year, to $13.1 million. The provision for tax, at $495,512, was $222,347 higher.

There were no extraordinary items this year, and the net profit includes dividends of $BllB from an associate company (last year, nil).

The dividend is unchanged at 15c a share, with a final of 10c a share (10 per cent). The bonus issue is subject to the condition that the consent is obtained of the Fees and Distribution Appeal Authority, or Govern-

ment regulations on bonus issues are terminated.

Immediately this condition has been met, the stock exchange will be notified and the bonus issue will apply to shareholders on the register at the close of business 10 days after the date that the condition is satisfied, the directors said.

Referring to trading, they said that during the year cost increases were held to a minimum, and the substantial profit increase was largely the result, of the higher sales coupled with increased efficiency in all departments. Sales and profits in the North Island grew at a faster pace than those in the South Island. The excellent result from the Palmerston North branch fully justified the considerable amount of time and money invested there in recent years, the directors said.