Smart bonus after boost

Press, 20 March 1987, Page 10

Smart bonus after boost

PA Auckland Auckland-based property and investment group, Smart Group, Ltd, is giving shareholders a one-for-three bonus after a substantial boost in profit for the year ended December 31.

After-tax profit was $20,684,090, compared with $263,000 the previous year. This included $1,398,000 as the share of associated companies’ retained profits (nil last year) and was after tax of $7OOO ($294,000). It includes 63 per cent of the profit of Williams Property Holdings, now a wholly owned subsidiary.

There were no extraordinary items in either year.

The chairman, Mr A. G. Morgan-Coakle, said the result excluded property revaluations of $15,298,000 which would be credited to the revaluation reserve. He said directors had decided to revalue property investments annually, with the increase in value being credited directly to the revaluation reserve less the cost of realisation.

This differs from previous years and is a departure from the standard accountancy practice No. 17 issued by the Society of Accountants, which requires revaluation gains to be included in the profit-and-loss account.

Mr Morgan-Coakle said that, in view of the group’s planned inter-

national expansion and access to world capital markets, directors had chosen to adopt the United Kingdom accounting standard, A final dividend of 2.5 c a share (5 per cent) will be paid on May 4. The bonus shares will not participate in the final dividend.

The latest result represents earnings of 78c each ordinary share, compared with 25c a year earlier. In a year of strong growth, total assets rose from $21.4 million to $204.7M, while shareholders’ funds were up

from $10.2M to $87.8M. The asset backing per ordinary share is 331 c, against 113 c. Mr Morgan-Coakle said the group had emerged as a major property and investment group. Noting that the group had begun activities in Australia, he said the benefits of planning and restructuring started in 1985 would not be brought to full maturity until 198889.