Tower Remains Profitable After Turbulent Year

Friday, 25 November 2011, 9:43 am
Press Release: Tower

Tower Remains Profitable After Turbulent Year

(Auckland – NZ): TOWER Limited today underlined its strong financial position by posting a $33.4 million net profit after tax for the year to 30 September 2011 and announcing that it will pay a final dividend of 2 cents per share.

"This is a satisfactory performance – especially in light of the demands on our business from the Christchurch earthquakes," said Group Managing Director Rob Flannagan.

Excluding the negative impact of the Christchurch earthquakes and the positive impact of the discount rate, a profit of $54.6 million was achieved – which was $3.7 million or 6% down on the corresponding period in 2010. The reduction was due to lower investment earnings.

“The Christchurch earthquakes and the global financial crisis created a difficult operating environment during the reporting period but I am pleased to say that this result demonstrates that TOWER has come through these challenges very well, supported by solid performances across each of TOWER’s business sectors.

“Claims of more than $450 million relating to the Christchurch earthquakes are being processed and TOWER will meet these claims in the normal course of business,” Mr Flannagan said.

TOWER’s robust financial position is highlighted by an increase in Net Asset Backing per share to $1.72 per share, and a 3% increase in Total Equity over the previous year to $455.5 million. Gearing remains conservative at around 15%.

While the $33.4 million net profit is lower than the previous year, the TOWER Board has determined that a fully imputed dividend of 2 cents per share will be paid on 1 February 2012. This brings the annual dividend to 6 cents per share.

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