Datamatic Northrop lifts profit 69 p.c. to $1.9M

Press, 24 September 1987, Page 27

Datamatic Northrop lifts profit 69 p.c. to $1.9M

Datamatic Northrop, Ltd (formerly Datamatic Holdings, Ltd), a supplier of information technology products and systems, yesterday announced a 69 per cent lift in profit for the six months ended June 30. This is the third successive rise in first half earnings since listing late in 1984. Operating profit after minority interests and tax was $1.96 million, compared with $1.16 million for the corresponding period last year. Directors forecast earning of 22c a share for the full year (1986, 18.3 c). They have recommended an interim dividend of 5c a share (4.3 c payable on a date to be advised. Tax provision offset against earnings was $1.78 million ($988,000). Turnover rose sharply

— by 132 per cent — with increased sales of established products and the introduction of new lines both by existing group companies and as a result of expansion by acquisition. Chairman, Mr Eric Rawlings, said the continued strong performance was in line with directors’ strategy of growth by bringing into the group companies having compatible products and services, both in Australia and overseas. Most group members contributed to the latest result, notably the recent newcomers Northrop Instruments and Systems, Ltd, New Zealand, and two Sydney-based companies, Data Peripherals Pty, specialist in local area networks and microcomputer systems, and PHM Australia Pty, supplier of surveying and

field engineering equipment. Data Peripherals joined the group in the second half of 1986 and Northrop and PHM in the first half of the current year. Data Peripherals had more than doubled its earnings under the group banner. Petrosys Pty which provides seismic mapping and other systems to the oil and gas exploration industry, had improved its trading position and was expected to return to profitability in the current six months. The Japanese joint venture, Nippon Technology Industries, Ltd, would break even before yearend and is expected to become a strong future profit earner. Nippon Technology had received a first order for its microchip sealing unit and the

outlook is for several more sales in the current half-year. The original operating company, Datamatic Pty, Ltd, continued to trade profitably and experienced good demand for its data communications, computer graphic and other systems. The Singapore-based data communications subsidiary, Radac Pty, was also a profit generator. Mr Rawlings said the 1987 first half result would have been better except for deferral of major contracts for data communications systems by Government authorities in Australia and Singapore. However, these would most likely be let in the current six months and would boost the full year’s result.