Revertex profit falls 16% on annualised basis

Press, 6 September 1989, Page 38

Revertex profit falls 16% on annualised basis

i Revertex Industries (N.Z.), the Auckland-based resins and chemicals manufacturer says its total audited profit of $2,760,000 for 18 months ended June 30 represents a 16 per cent drop when annualised. The profit for the 12 months to December 31, 1987, was $2,187,000. The 18-month period was used to change the group’s balance date from December 31 to June 30. The directors said that depressed markets and the high cost of raw materials for the 12 months from June, 1987, had contributed to the downturn in profit. The chairman, Mr Bill Campbell, said the company reported a steady recovery from the second half of 1988 as the economy picked up after the sharemarket crash, world petro-chemical prices stabilised and the value of the New Zealand dollar returned to a more realistic level. The strong upward trend had continued into the 198990 trading year, with further growth in both local and export volumes. "We are capitalising on the strong position we hold in our core resin and polymer business which, in turn, is supported by our building products and flooring operations in New Zealand, and the complementary and successful business we have built in Australia,” he said. “The benefits of maintaining a strong presence on

both sides of the Tasman were evident during the last 18 months, when the effect on the company of the New Zealand economic downturn was offset but a corresponding buoyancy on the other side of the Tasman. This diversity was the company’s greatest strength, Mr Campbell said. The extraordinary profit of $302,000 came after the reduction in company tax, and included a payment from a terminated life policy ($200,000 loss in the previous 12 months). Turnover was $90,968,000 ($52,790,000). This equalled an effective 12% increase on an annual basis. A final dividend of 2.75 c a share (5.5%) is payable on November 3. A tax credit of 1.35 c a share would be attached at the maximum accountable rate. No dividend withholding tax would be deducted as the credit fully offset the obligation to deduct the tax at source. The Bonus shares in lieu of dividend would not apply to the final dividend. The dividend recommendation gives a rate of 9.25 c a share for the 18 months. The rate for the previous 12 months was 7.5 c. Earnings a share, annualised after tax and before extraordinaries was 12.8 c (19.4 c Revertex audited result for 18 months ended June 30 1989—18 1988-12 months months ($000) ($000) Gross revenue 90,968 52,790 Pre-tax profit 3674 3771 Taxation ' 1216 1394 Minority int — 10 Group net profit 2458 2387 Extraordinary items 302 (200) Total profit 2760 2187