Mogal profit up: bonus

Press, 26 May 1984, Page 24

Mogal profit up: bonus

PA Wellington Mogal Corporation, Ltd, reports a record group profit of $2,882,000 for the year ended March 31, 1984 — an increase of 84 per cent on the previous year. The chairman, Mr D. O. Walker, has declared a taxfree bonus ordinary shareissue of one for two on shares held on June 8, 1984. The bonus shares will qualify for the final dividend for the year ended March 31, provided the shareholders accept the directors’ recommended dividend of 7.5 c a share (15 per cent) at the annual meeting of the company.

The dividend will be paid tax-free from reserves. It will absorb $675,000 and makes the total dividend for the year 10c a share (20 per cent). Mr Walker said that the very good result secured by' the company for the 1983-84 year was particularly pleasing in view of the more intense competition now being faced in Mogal’s traditional area of freight forwarding. This had followed the change in transport licensing which occurred during the year. The managing director, Mr R. H. Fisher, said that the group’s entry into tourism through its venture with

New Zealand Heritage Park typified the strengthening of Mogal’s base operations and was further complemented by expansion of the road transport activities through the recent acquisition of Ground Work Heavy Haulage, Ltd, and Mid-Canter-bury Transport, Ltd, freighting operations in the South Island. This latter move allowed the group to further maximise the benefits of deregulation. Mr Fisher further said, “We are still strong supporters of New Zealand Railways and operate more than 1000 rail containers.” The total dividend, of $825,000, is covered 3.5

times by earnings. Payment will be made on August 8. Shareholders’ funds increase by SI.BM to $10.7M, with shareholders’ equity at 33.8 per cent against 32.6 per cent a year ago. The 'earning ratio on average shareholders’ funds was 29 per cent (19 per cent) and on average total funds employed 10 per cent (6 per cent). Gross revenue, at $98,352,000, was up 6 per cent. Taxation, at $1,459,000 compared with $751,000 the previous year. Extraordinary items comprised a $274,000 gain, compared with an $84,000 debit the previous year.