Farmers Trading has 14.3 p.c. profit rise

Press, 31 May 1985, Page 10

Farmers Trading has 14.3 p.c. profit rise

PA Wellington Farmers Trading Company, Ltd, reported a 14.3 per cent higher group taxpaid profit for the year ended March 31 of $18,887,000.

Sales for the year increased 15.3 per cent to $389,283,000. Tax-paid profits for the first six months reflected a lower rate of tax before settlement of a 20-week ac-counts-deferred profits dispute with the Department of Inland Revenue. The provision for taxation, which now includes a partial deferred taxation provision on hire purchase debtors only, is $14,800,000, compared with $12,156,000 last year.

The final dividend will be 3.5 c a share, or 14 per cent, making the total ordinary dividend for the year 6c or 24 per cent. The company plans 1.3 c to be paid from share premium accounts subject to High Court approval, with the remaining 2.2 c a share coming from retained profits. Shareholders will be asked at this year’s annual meeting to approve a scheme to allow those ordinary shareholders who choose to receive bonus shares rather than cash dividends. If approved, the scheme will take effect with the interim dividend in January next year. ICI bonus Five other major companies also report profitable years. ICI New Zealand, Ltd, increased its unaudited net profit by 2.1 per cent to $7,628,000 for the half-year to March 31.

The marginal profit rise was caused by the increase in deduction for minority share-

holders and because there were no extraordinary profit items included this period, said the directors.

Extraordinary items amounted to $1.2 million in the corresponding period, last year. The directors recommend a one-for-five bonus issue and a tax-free interim dividend of 7c a share (5.5 c a share). Subject to the approval of an extraordinary general meeting on July 18, bonus shares will participate in the interim dividend, they said. The shares are to be issued as fully paid-up by a capitalisation of $3,507,264 from revaluation of assets reserve. Profit after tax included 100 per cent of the profits of Dulux New Zealand, Ltd, and UPEC Industries, ltd, following the acquisition of the minority holding in these subsidiaries. Consol. Metal The group tax-paid profit of Consolidated Metal Industries. Ltd, rose 29.9 per cent to $4,070,000 in the 12 months ended March 30. the directors, announced yesterday. The company’s results for the 15 months to June 30, and the recommended final distribution for the period are expected to be announced during the last week of August. The directors have declared a second interim ordinary dividend of 7.5 c a share (15 per cent) to be paid on July 26. John Webster The menswear manufacturer, John Webster and Company, Ltd, has reported a record consolidated net operating profit of $1,783,143 for the year to March 31. It proposes a further one-for-five bonus issue and a 1.5 c a share lift in final dividend. The latest audited earnings, which exceed the previous year by $738,645, or 70.7 per cent, were achieved after providing $608,500 more for tax at $1,116,355 and $384,802 for depreciation ($301,825). An extraordinary profit of

$47,522 ($11,775) lifted total earnings to $1,830,665 ($1,056,273).

The proposed bonus issue, which will not qualify for the recommended final dividend but rank pari passu thereafter, follows two bonus issues in 1984 — a one-for-three in February and a one-for-five in August. The final dividend of 7.5 c a share (6), to be paid on August 22, ex August 7, will include 3c tax free. The payout brings the total distribution for the year to 12.5 c (10c) a share which absorbs $557,575, covered 3.28 times by net earnings. Earnings a share, on the 1984 bonus-increased capital, rose to 41c, compared with the 28.4 c on the previous year’s lower capital. Stevens Corp Stevens Corporation, Ltd, reported that consolidated tax paid profits for the year ended March 31 rose 40.7 per cent to $754,000 ($536,000). Group sales were $69,661,000 ($56,695,000), an increase of 23 per cent. Tax was $587,000 ($445,000) and minority interests $47,000 ($39,000). Additional extraordinary profits of $109,000 (loss $241,000) arose from the sale of land and buildings surplus to requirements and shares. Profit for year after extraordinary items was $863,000 ($295,000). Earnings a share from trading operations rose by 40 per cent to 32.9 a share (23.4). The final dividend on ordinary shares will be 10c a share (10 per cent), of which 9c (9 per cent) will be tax-free. Total dividends are 13.5 c a share for the year (11.5), of which 12.5 c a share is tax-free. NZI Finance NZI Finance, Ltd, realised $7.4 million in the year ended March 31 as a result of the Bunting-Brierley Investments merger.

The company reported that its consolidated after tax profit for the year lifted 66 per cent to $13.6 million ($8.2

million last year). Included in that figure was $7.4 million ($3.4 million last year) in extraordinary items, arising from the merger.

NZI Finance’s total assets increased from $375 million to $593 million.

The general manager, Mr M.J. Wells, said the company’s strategy of expanding merchant bank activities had paid off handsomely and a major proportion of the profit came from the merchant bank subsidiary, NZI Securities. "As an authorised foreign exchange dealer, authorised dealer in Government stock and member of the New Zealand Futures Exchange, NZI Securities has been in a prime position to benefit from the opportunities arising from the deregulation and restructuring of the New Zealand economy. NZI Finance has also announced new interest rates.

The rates (with the old ones in brackets) are: call, 17 per cent (13 per cent); 1 month, 18 (14); 2 months, 18.5 (14.5); 3 months, 19 (15); 6 months, 19.5 (15.5) 9 months, 20 (-); 12 months, 20.5 (19); 18 months, 21 (16.5) 24 months, 22 (17); 36 months, 21 (17); 48 months, 20 (16.75); 60 months, -19 (16.75).