A. Barnett 1:6 bonus

Press, 6 October 1987, Page 47

A. Barnett 1:6 bonus

PA ' Dunedin Arthur Barnett is to make a 1 for 6 bonus issue next year. The plan was announced by directors yesterday when they reported an after-tax profit increase of 28.6 per cent for the year to August 1. They recommended a final dividend of 6c a share making a 12c total for each 50c share. The dividend amounts to $527,900, which is covered 4.1 times by group profit before extraordinaries. The bonus issue, for shares held on February 16, win not participate in the final dividend.

Turnover ' was up 3.3 per cent to $32329,000 ($31,870,000) and profit before tax was down 13.5 per cent to $1,895,000 ($2,193,000). But income tax was down to $343,000 against $986,000 last year. Added to the after-tax profit is $594,000, which represents the company’s share of earnings from its 50 per cent shareholding in Arthur Barnett Properties, Ltd. So the group profit before extraordinaries was $2,147,000. As a result of the creation of Arthur Barnett Properties last year and the sale of the retailing company’s real estate to it, there was also an

extraordinary profit of The directors said shareholders* funds increased by $4,947,000 to $18.6 million, which gives each 50c share an asset backing of $4.22. Based on a current share price of $3 and the profit for the year before extraordinaries of $2,147,000, the price-earn-ings multiple is 6.1. The share register will be closed from 5 p.m. on November 11 to 9 a.m. on November 19. The annual meeting will be held on November 18.