L.D. Nathan profit up 40.3 p.c.

Press, 15 November 1984, Page 31

L.D. Nathan profit up 40.3 p.c.

L.D. Nathan and Company, Ltd’s audited group trading profit for the 12 months ended August 31, after tax and minority interests, was $14,287,000 (last year $10,182,000), an increase of 40.3 per cent

Because the sums involved are immaterial no profits derived from associated companies have been included (last year $527,000). In addition to the trading profit of $14.3 million net,

extraordinary profits, mainly related to the sale of the group’s hotel and tavern interests, totalled $8,855,000 (last year $4,769,000). The total of profits for the year is $23,142,000 (last year $14,951,000). Provision for taxation is $9,858,000 (last year $5,834,000). Depreciation is $9,071,000 (last year $8,104,000). Notwithstanding the disposal of hotels and taverns and the shedding of uneconomic wholesale turnover, sales, excluding intergroup transactions totalled $863,094,000 (last year ($812,890,000); 80 per cent of sales were transacted for cash.

The financial year saw a great deal of activity as retail stores were either being built or refurbished. This ongoing programme has required a heavy commitment of capital funds and results already achieved by way of increased sales and improved profit performance amply justify the activity, the directors say. Oasis Industries, Ltd, has consolidated its ownership of the two South Island soft drink bottling companies, Lane Thompson, Ltd, and Southern Bottlers, Ltd, and results were much improved.

All sections of the group were profitable and the directors are pleased and satisfied with the over-all performance, the more so as it reflects not only the first fruits of recent investment in modernisation but also the planning, effort and skills of a great many people. The new financial year to the end of Octo-

ber has started lyCapital investment continues in the new financial year, with expenditure in excess of $25 million committed to the group’s development and modernisation programme and through this substantial job creation. Investment in improved distribution facilities has priority.

Beyond the present financial year, 1986 will see the opening of at least three new Maximart discount department stores, and with this significant impetus to L. D. Nathan and Company’s growth as retailers. On October 31, the company paid a second interim dividend of 13c a share, which with the first interim of 9c a share gives a total of 22c a share for the year (last year 20c a share). Both interim dividends were paid from realised capital profits to those shareholders who have not elected a revenue dividend. Having regard for the capital programmes necessary to build the group and, recognising the need for restraint in a difficult economic period for the country, the board has decided not to recommend a separate final dividend.

The directors also announce that Mr W. J. Shaw has joined the board of the company. Mr Shaw retires from his present executive position as general manager of the Bank of New Zealand during 1985, having held that post since 1980. He is chairman of the AustraliaNew Zealand businessmen’s council and past chairman of the N.Z. Bankers’ Association.