Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Nuplex Increases Profit, Dividend In Tough Envrnmt

August 19, 2005

Media statement
Financial result

Nuplex Increases Profit And Dividend In Tough Environment

Statement made by Fred Holland, Chairman, Nuplex Industries Limited

Geographic and product diversity assisted Nuplex Industries to weather adverse international trading conditions and post an after tax operating surplus of $29.2 million, an increase of 2.8%, for the financial year ending 30 June 2005.

It was the strength that comes from operating across four continents - Australasia, the Americas, Asia and Europe - that assisted us to make modest profit progress during a difficult year.

In spite of crucial international raw material shortages, savage petrochemical associated price increases, a softening demand in Australia, Asia and Europe, and a stubbornly high New Zealand exchange rate, we were able to deliver a reasonable profit in line with guidance given to the market.

While earnings per share at 40.8 cents is down on last year's 45.9 cents, as a consequence of issuing 14.6 million new shares, directors are confident in the forward momentum being achieved and have approved a 1.5 cent increase in final dividend to 14.5 cents, bringing the full year's fully imputed dividend to 26.5 cents ( up 8% or 2 cents ).

The underlying strength of operations, and the benefits of the significant expansion undertaken during the year, can be seen in the 42% increase in revenue to $929 million.

Earnings before interest, tax, depreciation and goodwill amortization ( EBITDA ) was up 10% to $81.5 million, a pleasing increase given the many challenges we faced and overcame during the year.

Nuplex is now a significantly different company following the acquisition of the Coating Resins business from Akzo Nobel for $208 million during the year.

The acquisition was an important stepping stone that has repositioned us from a regional into a global player in the resin industry utilising leading edge technology.

Our new Coating Resins business generated sales in the six month period of $255 million, and delivered an EBITDA return of $12.6 million.

In our most significant market, Australia, a softening of demand saw sales decline in New Zealand dollar terms by 1% to $478 million, and EBITDA by 10% to $44.2 million.

New Zealand traded well, increasing sales by 7% to $160 million, EBITDA by 5% to $22.3 million.

The company's capital expenditure during the year was $19.6 million, up 8%, and the debt to total tangible assets percentage at balance date was down from 41.5% to 41.2%.

Directors are offering shareholders the opportunity to reinvest their dividend back into the company through the dividend reinvestment plan at a discount of 10 cents on a weighted average sale price formulae.

In the current financial year focus will go on maximising the potential that exists within our current businesses. This will include restructuring business portfolios and seeking sensible "bolt on" acquisitions designed to achieve growth.

In the mid term there appears little change in the outlook for petrochemical prices, raw material demand and the New Zealand exchange rate.

While economic demand in New Zealand, Australia, Europe and Asia is expected to be flat with some recovery in Asia, our financial result will benefit from a full-year's contribution from the acquired coated resin's business.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>