Last ½ lift for DRG

Press, 29 February 1984, Page 32

Last ½ lift for DRG

A lift in economic activity and company restructuring have helped the stationery and packaging firm, DRG (New Zealand), Ltd, to lift its annual after-tax profits 9.2 per cent to $1,564 million. This was on turnover down 1.58 per cent at $32,176,000, million, and includes abnormal profit of $201,000 (from sale of land and buildings and net of redundancy and relocation costs). The directors recommend an increase in final dividend from 9.5 per cent to 10.5 per cent, making 17 per cent for the year, payable on May 25 from tax-free sources. The company says it has sufficient reserves to make continuing distributions tax free for a further four years. Trading profit, at $2,318,000, was down 7.76 per cent on the previous year. Interest payments were down $29,000 at $281,000 and tax was $674,000 (previous year $770,000). Sir John Marshall, the chairman of directors, said that the trading profits of the second half of the year to December 31, 1983, were 42 per cent better than for the last six months of 1982. However, the competitive pressures on selling prices which had reduced profits in the first half year, continued for the balance of the year. The combination of the price freeze and the recession, had forced the firm to reduce staff from July. Redundancy payments were a $190,000 charge against 1983 profits. DRG entered the early part of 1984 with a greatly improved order book, Sir John said. The current radio at December 31 was 2.1:1, compared with 2.0:1 a year earlier.