Broadway reports profit

Press, 25 February 1988, Page 23

Broadway reports profit

PA Wellington The Christchurch-based investment company, Broadway Industries, formerly Brother Holdings, has reported a profit of $256,000 for the nine months ended December 31, 1987, compared with $240,000 for the six months ended September 3, 1986. The company’s turnover was $27,477,000 (first half of 1986: $6,546,000). The pre-tax trading profit increased 297 per cent on the smaller period to $1,316,918 ($331,000). This was reduced by $586,000 in abnormal losses on realised nontrade related foreign-ex-change transactions by a subsidiary company, resulting In a pre-tax profit of $731,000 ($331,000). Taxation amounted to $410,290 ($91,000) resulting in a net profit of $321,000 ($240,000), which after deduction of $65,000 (nil) on minority interests, stood ' at $256,000

($240,000). The company announced shareholders will receive an interim dividend of 1.5 c a share (3 per cent), which will be paid on March 28, 1988. The company says it has not incurred any realised or unrealised losses on listed shares. Broadway held shares in a listed company through one of its subsidiaries at December 31, 1987, but these have been subsequently sold for a profit.

“The development of Broadway Industries into an industrial holding company has progressed well, and will provide a sound foundation with which to achieve our stated objective of providing medium term growth for shareholders,” Broadway’s chairman, Mr lan Farrant, said. Mr Farrant said that Broadway Industries controlled the cash flow of its major investments, 100 per cent owned Brother

Distributors, 100 per cent owned H. E. Perry, and 80 per cent of South Island Dairy Association, which are long established businesses with no exposure to speculative activities. “While the profit for the period to December 31 is less than desirable, we believe the next six months will show an improved result assuming a stable economic environment,” he said. Mr Farrant said Broadway’s balance sheet underlined the company’s strong financial position, with shareholders’ funds of $14,576,000 at December 31. Term liabilities were $5,372,000. Current liabilities were $20,563,000 and current assets totalled $26,208,000, providing the company with a working capital of $5,645,000.

Fixed assets totalled $12,026,000. Investments amounted to $42,335,000 which included $4761 investment in a public listed company, which has since balance date been sold at a profit.