Alliance bonus issue after good result

Press, 5 October 1984, Page 12

Alliance bonus issue after good result

Alliance Textiles lifted its net profit 42.7 per cent to $7895 million in the year to July 31. The company’s operating profit jumped 89.1 per cent from $5,054,000 to $9,561,000, on sales up 22.5 per cent from $74,122,000 to $90,842,000. The net profit figure was after export incentives of $3,142,000 (up 105.6 per cent), extraordinary items of $96,000 (down from $515,000) and taxation of $4,904,000 (up from $1,565,000). Alliance announced yesterday a bonus share issue and a second interim dividend higher than last year’s final dividend.

The company will make a two-for-five issue of 25 cent shares to shareholders as at October 19, subject to the approval of shareholders to capitalisation of revenue

reserves for this purpose at an extraordinary meeting in Auckland on October 31.

The directors propose a second interim dividend of 4.5 c per share, including the new bonus shares. No final dividend is planned.

The second interim will be paid on October 21 and with the first interim dividend of 3.75 cents paid in May will make a total dividend for the year of 28.7 per cent. Last year’s final dividend was 3.5 cents.

Alliance said yesterday that trading since balance date continued at record levels, with sales in August and September exceeding the corresponding months last year more than 40 per cent.

“Activity for the whole of the current half year is already assured by firm orders both local and ex-

port. Directors expect exports to increase to around 30 per cent of turnover in the current year,” a company statement said. Export sales in the year to July 31, at $21,134,000, were 23.2 per cent of the total turnover. They almost doubled from $11,282,000 in the previous year, when they were 15.2 per cent of the total. The statement also noted that Alliance had purchased a 50 per cent interest in an established Australian fabric knitter and modem dyeing and finishing plant. “This acquisition will supplement our increasingly profitable local fabric knitting operations and provide additional capacity for specialised products to the Australian market we have established,” the company said.