Northrop cash, bonus issues

Press, 7 August 1985, Page 34

Northrop cash, bonus issues

Northrop Instruments and Systems, Ltd, reports an audited net profit after tax for the year ending March 31, of $837,534. This is an increase of 35.3 per cent over the 1984 combined profit of Northrop Instruments and Systems, Teltherm Instruments and McLean Information Technology. Northrop, Teltherm and McLean merged last September. The company is to make a one-for-eight bonus issue following the company’s buoyant trading since listing and a one-for-five renounceable cash issue of 25c shares at 50c a share. The directors recommend a final dividend of 2c a share, of which 0.5 c will be tax-free, subject to the necessary approvals. The dividend will be payable on September 25, with the taxfree portion payable from realised capital reserves. The net profit places Northrop substantially ahead of the November 1984 prospectus projections of $700,000. Turnover for the year increased by 42 per

cent to $15,512,000 ($10,915,000). Sales rose in all areas and an increased market share was gained by the information technology group and the industrial control group. Substantial new business also occurred in scientific equipment sales and hospital consumable products. Application for the new issue will be payable in full by September 30 and renunciations will close on October 7. In determining entitlements to the bonus and cash issue, fractions will be disregarded.

The directors advise that the cash issue is being made to provide for further expansion and for additional working capital, as trading is continuing at a level substantially ahead of forecasts made at the time of listing in November. The new shares resulting from the cash issue will rank fully for the final dividend for the year ending March 31, 1986, but will not rank for the interim dividend for the six months to September 30, 1985.