Bendon lifts profit

Press, 13 February 1986, Page 26

Bendon lifts profit

PA Wellington Bendon Industries, Ltd, lifted tax-paid profit 11.8 per cent to $3,555,000 ($3,181,000) for the six months ended December 31. Sales were up 6.7 per cent to $28,358,000 ($26,580,000) and pre-tax trading profit was up 16.2 per cent to $6,424,000 ($5,527,000). Tax took $2,869,000 ($2,346,000). The interim dividend is 7c a share, or 28 per cent, with books closing March 17. The dividend compares with last year’s payment of 6c which represents an increased payment of 40 per cent after taking a one-for-five bonus issue into account. The chairman, Mr M. B. Sheffield, said that, despite some signs of lower retail activity the directors were confident that the results would show a satisfactory increase for the year ending June 30.

Having declared unconditional its take-over offer for John Webster, Ltd, Bendon would proceed to amalgamate the Webster companies as wholly owned subsidiaries of the Bendon group. “This acquisition is not expected to have any significant effect on trading results to June 30, 1986,” Mr Sheffield said.

“The principal benefits will arise from the cross fertilisation that will occur as the two companies take full advantage of each other’s strengths.”

Bendon said earlier that its offer of 253 c a share for all shares in John Webster had been accepted by holders of 5,323,814 shares, representing 95.6 per cent of the total capital. John Webster said that it had been removed from the Stock Exchange list.