Interim profit up 55 p.c.

Press, 3 November 1984, Page 24

Interim profit up 55 p.c.

The EMCO Group, Ltd, has announced a 55 per cent increase in unaudited tax paid trading profit for the half-year ended September 30.

Mr L. M. Papps, the group chairman, said yesterday that the unaudited tax paid trading profit was $7,005,060 compared with $4,512,000 for the corresponding period last year. Group sales were 24 per cent up at $223,069,000 (1983: $179,569,000). Extraordinary profits of $1,246,000 arising from the sale of surplus property (loss $155,000) brought the total group profit for the period to $8,251,000 ($4,357,000). This is a total increase in tax paid profit including extraordinary items of 89 per cent.

Devaluation had little effect on group trading profit, apart from the bringing forward of some sales, Mr } Papps said. “The board is confident that the group will produce a good second half-year result, subject to the Budget’s not containing anything materially adverse to EMCO’s operations,” Mr Papps said. Group Rentals had produced a good result in all areas of activity, particularly the growth areas of the sale and rental of video cassette recorders and video mbvie hire. The company now has a major involvement in videotex and ex-

pects to further expand its activities in the electronic information sector.

“The company retained its dominant share of the TV and video rental market,” he said, “and this activity continues to make a major contribution to profits.”

In cars, demand for the new Honda range introduced during the period had been high. Sales were expected to continue at a satisfactory level for the remainder of the year. "Earlier this year production volume was adversely affected by the introduction of a completely new model range into the assembly plants. This initially had some effect on market share which has since been recovered,” said Mr Papps. "Healing Industries has performed well. Results were ahead of the same period last year with all divisions making a worthwhile contribution,” Mr Papps said. , Domtrac, with a reduced product range, has been able to take full advantage of the growth in the transport and construction sector. “This has resulted in a greatly immproved contribution.”

The directors announced in October, in respect of the current year, a tax-free in-

terim dividend of 5 per cent from capital reserves. This was being paid to ordinary shareholders yesterday.