Reid 1:2 bonus

Press, 25 August 1988, Page 28

Reid 1:2 bonus

Reid Farmers increased its total profit in the latest year, and the directors are recommending a one-for-two bonus to shareholders.

The total profit of the Dunedin-based stock and station agent rose 1.9 per cent to $1,939,000 in the year ended June 30, compared with the previous corresponding period. The profit of the company, now 39.76 owned by Pyne Gould Corporation, of Christchurch, included extraordinary profits of $84,000 ($173,000 previously). If these figures are excluded, the group net trading profit is 7.2 per cent ahead at $1,855,000. The chairman, Mr R. R. Hudson, said that continuing rigid cost controls, the growth in farmer clients, record wool volume and increased sales in merchandise, seeds, and livestock, had produced the excellent result. The assets of the company and advances to clients, which increased, had been soundly valued.

The finance subsidiary, which produced successful results, continued its conservative lending policy. Reid Farmers handled a record 95,000 bales of wool during the year for a value of $7l million. Property sales also rose considerably. "The directors believe the record rebate of 57 per cent (53 per cent) being recommended to farmer shareholders should be of assistance to many of the company’s clients,” Mr Hudson said. Turnover increased 11.26 per cent to $162,581,000, and after expenses, the pre-tax profit was 7.8 per cent up at $3,517,000. Tax took $129,000 more at $1,662,000. An annual dividend of 7.5 c a share (30 per cent) has been recommended, an increase of 0.5 c a share on the previous year. The dividend, which will not be paid on the bonus issue, is payable on September 28, ex dividend on September 16.