Another FTC bonus on record profit

Press, 1 June 1984, Page 17

Another FTC bonus on record profit

The unaudited group taxpaid profit of Farmers' Trading Company, Ltd, for the year ended March 31 amounted to a record of $16,531,000, compared with a restated figure of $13,308,000 for last year, a comparable increase of $3,223,000, or 24.2 per cent, the chairman (Mr R. H. Busfield) announced. A change in the method of accounting for profits on hire purchase sales, which has been consistently applied for both years, has increased the tax-paid profits for 1984 and 1983 by $1,094,000 and $806,000 respectively. Sales for the year amounted to $337,766,000 against $275,436,000 last year, an increase of 22.6 per cent. This sales increase has

again resulted in an increased market share being achieved against strong competition, he said. Increased sales as well as efficient control on overheads in a period where gross margins have been eroded by the price freeze, resulted in this record profit In accordance with the previously stated policy on shareholder benefits and in recognition of the record profit achieved, a one-for-eight bonus issue will be made. This bonus issue which will participate in the final dividend in July, will alter the conversion ratio of the cumulative 17 per cent specified preference shares from the present 10 for 4. to 45 for 16. The directors propose to

maintain the present dividend rate on the bonusincreased capital. The books will close to determine entitlements at 5 p.m. on July 4, and reopen at 9 a.m. on Julv 20. The directors have recommended a final dividend of 14 per cent, or 3.5 c an ordinary 25c share. This increase of 1 percentage point in final dividend on bonusincreased capital, makes an effective increase of 29.3 per cent in dividend payment for the year. The dividend will be payable on July 20. The provision for taxation. which includes a partial deferred taxation provision on time payment debtors, is $12,156,000 compared with $9,456,000 (revised) for 1983.