Revertex cut to $2M profit

Press, 14 March 1987, Page 29

Revertex cut to $2M profit

PA Wellington Higher income tax and depreciation knocked Revertex Industries (NZ), Ltd’s profit before extraordinaries for the year to December 31 down 34 per cent to $2,011,000 ($3,047,000 the previous year).

A 3.75 c a share final dividend will be paid on April 24. The Auckland-based chemicals and paint maker’s turnover was slightly higher at $51,848,000 ($51,160,000). However the company’s pre-tax profit eased to $4,143,000 ($4,422,000) after increasing its allowance for depreciation to $1,154,000 ($793,000). Income tax was 62 per cent higher at 2,033,000 ($1,249,000), due to reduced export incentives and the non-recurrence of investment allowances which were available in 1985.

Minority interests took $99,000 ($126,000), the company said in a statement to the Stock Exchange.

Extraordinary income of $40,000 ($1,034,000), gave Revertex a bottom line profit of $2,051,000 ($4,081,000). The extraordinary income came from ending the replacement cost insurance contract for rebuilding the Penrose resin plant and laboratory which were destroyed by fire in February, 1984. Shareholders could

choose to receive bonus shares instead of the dividend. Revertex said it had a stronger second half in 1986 due to a more buoyant economy, a growth in market share in its core businesses and a generally more stable industrial setting. The chairman, Mr W. R. Campbell, said all the work involved in restoring the plant and buildings damaged by fire three years ago was finished in the first half of the year.

The group could now look forward to "significant growth” both at home and abroad from the strong financial base it had developed.