Angus lifts profit 350% to $5.2M

Press, 7 October 1987, Page 39

Angus lifts profit 350% to $5.2M

PA Wellington The Auckland-based construction and property development company, Angus Group, has reported a 350 per cent profit increase with an after-tax profit of $5,299,000 for the year ended July 31.

The final dividend will increase by 1c a share to 7.5 c, making a total dividend for the year of 14c -r or 28 per cent, up 4 per cent on last year. Shareholders would receive a bonus issue of 1 for 5 and bonus shares would qualify for the final dividend, Angus chair-

man, Peter Greybum, said yesterday. Angus group chief executive, Lloyd Ferris, said the profit represented a satisfying result for the group’s operations in a period of continuing growth in the construction and property development industry. Turnover increased by $45 million over the previous year to $120.7 million and after tax profit jumped $3.3 million to $5,047 million. After a share of interests in associated companies of $230,000, net profit was $5,299,000 ($1,676,000).

The bottom line was split into realised profit of $3,662,000 ($1,008,000) and unrealised profit of $1,673,000 ($500,000). “In its interim report the company identified the need to strengthen its capital base, and since balance date we have made a major move towards this goal with the acquisition of our former parent company, Angus Corp,” Mr Ferris said.

As a result of this move, the ratio of shareholders' funds to total assets would improve from 21 per cent to 54 per cent, he said. Shareholders’ funds at July 31, 1987 were $l3 million, but the acquisition of Angus Corp meant that the figure had now increased to $5B million.

The continuing strength of the Angus Group was illustrated by the projected tax paid earnings for 1988 of $11,550 million, Mr Ferris said.

The company had increased its forward work level to $2OO million with an additional $lOO million being negotiated. A milestone during the year was the building of Grafton Mews, an office complex in Auckland in which the company has retained ownership — the first of its projects not to be sold. Two other properties in the same category, in Queen Street Auckland and the Boulcott Street development in Wellington, are due for completion in late 1988.