Repco well ahead

Press, 29 August 1984, Page 33

Repco well ahead

Repco Corporation, Ltd, earned a better than forecast trading profit of $7,968,756 in the latest year to June 30 and is establishing a 15 per cent dividend rate, with a final 8 per cent (4c a share). The trading profit compares with forecast earnings of $6.2 million for the year, in the scheme of arrangement document.

In the first half the company, formed out of a merger of MSI Corporation, Repco New Zealand, and Andrews and Beaven, earned a profit of $2,047,000. The directors say the first

six months bore the main burden of restructuring and rationalisation.

“By the second half of the year all profit centres had been established and although minor rationalisation was -carried out during this period, the majority of companies were able fully to concentrate on trading opportunities.” In addition to the trading profit the company had extraordinary gains of $1,177,000. These were made up of the difference between capital gains on the sale of properties and investments ($5,633,000) and

extraordinary losses of $4,456,000 relating to rationalisation. Taxation of $306,395 was payable by associate and partly-owned companies. No tax was payable by the wholly-owned subsidiaries of the corporation because of losses in previous years. The directors say that because of changes in the group, comparative figures are not appropriate. They forecast a solid profit rise in the current year.

The final dividend of 4c a share is payable from taxfree sources on November