TKM profit up 20% to $37M
NZPA Wellington • Brierley Investments British-subsidiary Tozer Kemsley and Millbourn (Holdings) Pic has boosted after-tax profit by almost 20 per cent to £14,082,000 for the six months to June 30.
The result, which converts to $NZ37,057,894 at the current New Zealand dollar/sterling crossrate, compares with £11,761,000 for the same period last year ($NZ30,950,000), a 19.7% rise.
TKM is 66 per centowned by the Hong Kongbased Brierley offshoot, Industrial Equity (Pacific), and is involved in motor distribution, property and leisure activities. It is listed on both the International Stock Exchange in London, and the New Zealand Stock Exchange. The chairman, Sir Ronald Brierley, noted in a statement to shareholders that lEP was continuing to buy TKM shares on market and now controlled 66.53% of the company. In July, 1985, Brierley’s took majority control of the long-established company which now claims to be the largest group of car retailers in Britain. Franchises include Rolls Royce, BMW, Jaguar and Ford. TKM’s activities also include car and van rental, tyre distribution and hous-
ing and leisure developments in Spain, Britain, the United States and Canada. Sir Ronald said the company’s vehicle sales had remained strong in all markets and would improve given predictions that new registrations in Britain would reach a record high for the full year.
But high interest rates in Britain were beginning to affect trading and sales were expected to level off after August, he added. The company had bought Subaru (Aust) Pty, giving it exclusive distribution rights for the Subaru brand in Australia. The investment supplemented TKM’s Australian Ferrari agency and had established a sound base for further investment in Australia.
The relocation of the company’s French operation had opened the way for further European expansion but had “disrupted profitability in the short term,” Sir Ronald said.
TKM had turnover of £516,210,000 ( £475,209,000) and lifted profit on that 22.3% to £23,596,000 ( £19,286,000). The company paid interest of £4,025,000 ( £3,400,000) and an extraordinary profit from the sale of investments contributed £1,669,000 ( £1,960,000).
But Sir Ronald said the extraordinary gain should be regarded as a nonrecurring item despite similar realisations in recent years. He predicted the second half of the current year would follow the normal pattern of the company’s business by returning a more profitable result. TKM will pay an interim dividend of 1.5 p a share on October 30. Taking the recent one-for-10 bonus issue into account, the dividend was equal to 1.65 p a share when compared with the Ip a share paid last year. Before-tax profit of £21,240,000 ( £17,846,000) was cropped by a £7,158,000 tax bill ( £6,085,000). Minority interests took £76,000 ( £87,000) to leave final profit at £14,006,000 ( £11,674,000).
Dividends amounted to £3,673,000 ( £2,164,000), making retained profit £10,333,000 ( £9,510,000). Earnings a share were 6.0 p (5.3 p adjusted for the May bonus issue) and 5.9 p (4.9 p on a fullydiluted basis. Meanwhile Brierley’s has been the subject of at least five glowing and detailed reports from London brokers in the last two months. The deputy chairman, Mr Bruce i Hancox, confirmed on 1 Tuesday that most of the buying in the company recently came from offshore, particularly Britain. • lEP Securities has disclosed a 7.54% holding in the travel, transport and financial services group, Hogg Robinson. It has been buying the shares for the last five months.
Tozer Kemsley and Millbourn (Holdings) unaudited interim group results for the six months ended June 30
1989 £000 1988 £000 Turnover +8.6% 516,210 475,209 Trading profit — including share of associated companies 23,696 19,286 Interest. . Profit before exceptional (4,025) (3,400) item and taxation +23.2% 19,571 15,886 Exceptional profit 1,669 1,960 Profit before taxation . +19.0% 21,240 17,846 Taxation (7,158) (6,085) Profit on ordinary activities after taxation 14,082 11,761 Minority interests (76) (87) Profit for the period +20.0% 14,006 11,674
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Press, 7 September 1989, Page 21
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631TKM profit up 20% to $37M Press, 7 September 1989, Page 21
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