BIL $135.3M lives up to expectations

Press, 10 March 1987, Page 39

BIL $135.3M lives up to expectations

Brierley Investments, Ltd, fully lived up to the expectations of sharemarket analysts when reporting a half-yearly profit of $135.3 million — at the top end of most predictions. The result was two and a half times higher than that of the previous corresponding period ($53.0 million). Turnover in the six months ended December 31, was $2.3 billion compared with $1.9 million last year, and profit before tax was $320.5 million ($129.6 million), up 147.3 per cent. Income tax was 135.8 per cent higher at $59.9 million — a rate of 18.7 per cent. Minority interests took 144.6 per cent more at $125.3 million. The improvement in the tax-paid profit of 155.5 per cent was consistent with the increased level of shareholders’ funds and better trading results, particularly from companies within the New Zealand group, the directors said in a statement to the

Stock Exchange. The acquisition of Magnum Corp, Ltd, was reflected in the accounts, and resulted in a reduction in profitability as the cost price of the shares was written down to their underlying net asset backing. “Although the improvement in profit for the full year will be less than that indicated by the trend in the first six months, the. over-all outlook is good and the board anticipates a very satisfactory result for the full year to June 30,” they said. They declared an interim dividend of 4.5 c a share, to be paid on April 22. Shareholders who had elected to receive bonus shares instead of dividends, the election price (which is based on 90 per cent of the average market price of shares sold through the New Zealand Stock Exchange on the five trading days immediately before the announcement) would be 385 c a share. The board intends to

maintain an annual dividend rate of 20 per cent on the capital increased

by the two rights issues in 1986 and the bonus issue in January.