Barclays drops

Press, 25 February 1986, Page 21

Barclays drops

PA Wellington Barclays New Zealand, Ltd, tax-paid profit fell by 34.3 per cent to $2,441,000 ($3,715,000) for the year ended December 31, the Wellington-based investment banker announced yesterday. Operating profit dropped 14 per cent to $3,381,000 ($3,945,000), but tax was significantly higher at $940,000 ($230,000)

The directors recommended a final dividend of 5.6 c a share, which, added to the 4.4 c interim dividend, made a total unchanged dividend of

10c for the year. The dividend is payable on April 23 and books close April 11. The chairman, Mr W. J. Shaw, said the profit fall was disappointing, but it had been a difficult trading year, with deregulation of the financial sector bringing increased competition and pressure on margins. The tighter business climate in general had also resulted in a higher level of write-offs and provisions.

Underlying profitability, however, was good and the company was in a sound financial position,

with a high degree •of liquidity.

The directors were confident of a “much improved” result for 1986.

They will recommend to shareholders at an extraordinary meeting on April 23 (the same day as Barclays' annual meeting), to propose a change in the company’s articles of association allowing for the issue of shares in lieu of dividends.

If approved, shareholders would be given the opportunity of participating in respect of the final dividend announced yesterday.