Motor Holdings cuts its dividend rate

Press, 16 June 1983, Page 20

Motor Holdings cuts its dividend rate

Motor Holdings. Ltd. the Auckland-based mtorvehicle assembler and distributor, has cut its annual dividend rate after yesterday announcing a poor result to March 31.

The group net profit fell from $3,556,214 to $186,098. and a recommended final dividend of 2c a share reduces the annual rate from 15c to 11c a share (22 per cent). The directors said that, as expected, the second half of the financial year proved to be a difficult trading period.

These difficulties had continued into the first half of the new financial year, but an improvement was expected as the pace of economic activity increased in the second half of the year and as the company's industry sectors became more stabilised, especially for the assembly

Other activities of the group, particularly those involved in the farming sector. suffered heavily from recessionary influences, they said. These activities were expected to increase their con-

tribution to the group as the economy improved.

Since the balance date, group inventories had continued to fall markedly, producing an improvement ,in liquidity.

Included in the result were equity profits of $33,935 ($661,078 previously), and it was arrived at after providing $2,084,920 less for tax at $61,037.

Turnover rose 2 per cent to $88.5 million. Of the final dividend of 4c a share, 2c a share is taxfree. The dividend is payable on August 18.