Newmans Group advances profit

Press, 30 August 1985, Page 8

Newmans Group advances profit

Newmans Group, Ltd, has reported an unaudited taxpaid profit of $13,440,000 ($10,217,000) for the year to June 30.- This is an increase of 32 per cent. An interim dividend of 5c a share (10 per cent) was paid on May 23 and directors have announced a final dividend of 6.5 c a share (13 per cent). The directors said they would recommend a change of the company’s articles of association to give shareholders the option of receiving a bonus issue of shares in lieu of a dividend in cash, thus avoiding the tax on dividends introduced in the recent budget. Newmans was the second

company, after Fernz Corporation, Ltd, to announce such a move yesterday.

The total dividend for the year of 11.5 cents per share (23 per cent) is unchanged from last year, but shareholders had received a one-for-seven bonus issue during that period. The dividend is payable on December 13. Books close on November 27.

Extraordinary profits were $2,680,000 ($1,523,000) making the total profit from all sources $16,120,000 ($11,740,000). Revenue was $205.9M ($135.9M). An income tax benefit of SI.2M was added to the year’s profit (last year a payment of SI.4M).

Overseas revenue earned by the group, including Newmans’ share of associated companies’ overseas revenue, totalled

SIO3M (last year S47M). All divisions except Newmans Air, which started operations during the year, contributed to the improved profit performance. All sectors, including organised tours, coach lines and rentals, recorded significant increases.

As expected, Newmans Air traded at a loss for the period. “The airline is popular with domestic travellers, and continuing marketing efforts are being made to improve its financial performance,” the directors said.

The freight division’s result was pleasing, in the face of difficult trading conditions.

Both the minerals and export divisions performed well. Profits from investments in

associated companies made a major contribution.

The most significant performances came from Nelson Pine Forest, Ltd, and Trans Express Investments Ltd (in which the Group since balance date had increased its holding from 50 per cent to 100 per cent). The return on shareholders’ funds from trading and equity profits of 20.9 per cent, compared with the 20.3 per cent achieved in 1984 and 16.8 per cent in 1983.