Donaghys happy with profit

Press, 1 July 1983, Page 17

Donaghys happy with profit

The audited consolidated earnings after tax of Donaghys Industries, Ltd, for the year to March 31, were $3,077,000, compared with last year’s result of $3,026,000, the directors announced. Provision for taxation was $1,404,000 (last year $1,781,000). The profit is a 1.7 per cent improvement over the 1982 result. This was achieved despite the general economic downturn over the second half period and also the consequences of the price freeze regulations. Difficult trading conditions were com-, pounded during the latter part of the year throughadverse weather causing a deterioration in turnover in group divisions servicing the agricultural and horticultural industries, the directors said. Taking all factors into account, the directors believe that the company has performed creditably.

The results include a full 12 months for Plix Products, Ltd, Donaghys Electronics, Ltd, and Stafix, Ltd, and the inclusion of these recently-acquired subsidiaries has assisted in offset-

ting the effects of the economic downturn. Group exports increased substantially for the year. The associated Australian company, Kinnears, Ltd, has been adversely affected by the severe drought and economic conditions prevailing in that country, and the reported profit reflects the consequent lower dividend received from that source. The formalities of the company’s investment in Ropes Fiji, Ltd, have been completed, but no profit from that company has been included. The directors recommend a final dividend of 13 per cent (6.5 c a share), which, with the interim dividend of 9 per cent (4.5 c a share) will make 22 per cent (11c a share), for the year ending March 31.