Tooth increases profit 17.3p.c.

Press, 9 March 1988, Page 43

Tooth increases profit 17.3p.c.

NZPA-AAP Sydney! Tooth and Co, Ltd, Ade-[ laide Steamship Co’s hotel; operator, • pushed its in--terim net profit up 7.3 peri cent to sAust27.o7 million! (5NZ29.42M) for the six.' months ended December, 31- ; Tooth, which is 43.4 pen cent owned by Adsteam,’ lifted turnover 10 per cent to sAustl66.olM. 1 Tooth chairman, John Spalvins, said inclusion of a full six months revenue from Tooths Managed Hotels, from three months in the previous period, and increased sales by Penfolds Wines Pty, Ltd; and P.D.S. Rural Pro) ducts, Ltd, had boosted turnover. j Tooth will pay a 20c dividend franked to 17c, up from 17.5 c in the previous period. [ He said the company expects to launch a S36M damages claim against Carlton and United Breweries (CUB) over litigation between them oh leasing of hotels to CUB.

l Supreme Court action in i the case ended last year, and CUB had recently j launched Federal Court ‘ proceedings on the leases. ! But directors expected ( the decision to go in j Tooth’s favour. A dam- ; ages hearing would probj ably be held in the • Supreme Court of New South Wales late this year. Redemption of all preference shares and repayment of all foreign currency borrowings in the previous financial year pushed interest costs up to 519.29 M from $10.77M. Mr Spalvins said Penfolds performed well in spite of a depressed wine market, and was now the largest wine exporter in Australia. A reasonable trading environment in New South Wales lifted Tooth Hotels profits. Tooth’s 49.69 per cent owned subsidiary, National Consolidated, Ltd, contributed $4.4M in dividend and SBM in equity accounted profits.