Leyland

Press, 14 December 1985, Page 21

Leyland

PA Wellington More than 60 per cent of the shareholders in Leyland Investments, Ltd, have decided to take bonus shares in lieu of a dividend after shareholders voted approval for the measure at an extraordinary meeting in Auckland on Thurs-

day. The chairman of Leyland Investments, Mr John Strevens, told shareholders gathered for the annual meeting directly afterwards, “It will'be interesting to see what pat-

terns of dividend distribution emerge next year when the Government brings in the imputation system for taxation on dividends.

“Shareholders on low tax rates will then find it more advatageous to accept cash dividends, but shareholders on higher tax rates may still find it preferable to accept bonus shares at a discount on market price.” Shareholders confirmed dividend payments totalling 10c (20 per cent) for the year made up of a 6c interim and 4c final dividend, and voted to increase the company’s authorised capital from $4 million to $25 million by the creation of 42 million 50c shares.

As reported, the company will make a one-for-one bonus issue next month after making a total net profit of $2,884,887. This was made up of a net taxpaid trading profit of $313,843,000, equity income of $477,932,000 and net gains on investment sales of $2,093,102.

Bonus shares taken in lieu of dividends will be eligible for the January one-for-one bonus issue.

Mr Strevens said that despite forecasts of tougher times ahead he expected the company’s trading profit and equity income for the year to September 30, 1986, would-be well ahead of the $791,775 reported for the 1985 year. The year had begun well for portfolio and fixed interest investor, Leyland Growth, Ltd, and for the investment bank, Leyland Capital, Ltd, both of which formed part of Leyland Investments Holdings.