Wilson and Horton tops $10M in tax-paid profit

Press, 29 May 1985, Page 38

Wilson and Horton tops $10M in tax-paid profit

PA Auckland Record tax-paid earnings which break through the 510 million level for the first time have been announced by Auckland-based printer and publisher, Wilson and Horton, Ltd. The company’s directors plan a l-for-10 renounceable cash issue of ordinary 100 c shares at a 300 c premium (making an issue price of 400 c). The March year unaudited profit of $10,286,129 is a 60.1 per cent increase over the 1984 trading result.

It includes $1,661,277 described as income from’ Reuter PLC sources and six weeks contribution from United Publishing and Printing Company, Ltd, which was acquired late in the year. In addition, capital profits of 541,149 are recorded (1984, 52,398,394). The proposed final dividend of 10c a share (10 per cent) will be paid on capital increased by the one-for-one bonus issue in January. The total ordinary dividend will

be equivalent to 30c a share on the old capital. The shares from the cash issue will not qualify for the final dividend. The result was achieved on group sales which were 23.7 per cent ahead, at $105,276,140, from the $85,073,129 of 1984. Tax for the year was up from $4,729,755 to $6,238,157 and depreciation rose from $3,755,269 to $4,249,619. The minority-interest share of subsidiary losses amounted to $168,661. The directors said that

most trading activities of the company showed an improved profit. In particular, the “New Zealand Herald” operated at record advertising and circulation volumes and commercial divisions produced significant increases in sales. The cost of newsprint consumed increased 36.9 per cent on the previous year. United Publishing and Printing traded well to the end of the financial year, with its results also showing a substantial rise on the previous year.

As expected, the directors said, Northern Television, Ltd, operated at a sustainable loss. Applications for commercial television warrants were made by Southern Cross Television, Ltd, in which Wilson and Horton owns a significant investment. The directors said the Wilson and Horton group owns 21.53 per cent of NZPA Investments, Ltd, which in turn owns “a most valuable” holding of Reuter PLC shares in London. Proceeds of the l-for-10

cash issue will be used to strengthen further the company’s long-term funding structure, the directors said. They expect to maintain further dividends at the same level of 15c a share on the increased capital. The amount required by the final dividend is $1,896,783 making, with the two interim dividends, a total pay-out for the year of $4,172,923. The final dividend will be paid on July 25. Shares are ex-dividend and the cash issue on June 28.