Broadway Industries records 49.5 per cent slump in profit

Broadway Industries today posted a December-half net profit of $958,000, down 49.5 per cent on the previous year's profit of $1.89 million.

Total operating revenue was $23.1m, against $22.3m in the December 2003 half.

Broadway's operating surplus before tax was $1.4m, from $1.898m.

Earnings per share was 4.9cps, from 9.7cps, while a final dividend of 2cps would be paid.

In a statement to NZX, Broadway said a tax charge of $485,000 was "recognised for the first time as brought forward tax losses are utilised".

One of Broadway's business units -- photographic equipment importer HE Perry -- returned a profit of $100,000, down some $1m on the December 2003 half because of lower sales, reduced margins and competition.

However, Broadway's kitchen, bathroom and laundry products business, Mercer Stainless, had been impressive, it said.

Mercer Technologies supplies specialist equipment to hospitals, laboratories and to the food processing industry.

Turnover for both Mercer Stainless and Mercer Technologies was a combined $13.7m, from $11.8m in the December 2003 half.

"The surplus from these activities includes further gains amounting to $100,000 arising from the replacement of assets destroyed in the October 2003 fire," Broadway said in the statement.

The Mercer companies posted a combined surplus, excluding one-off gains, of $1.3m, from $900,000.

At 11am, Broadway shares were down 5c at $1.20, having ranged between 86c and $1.30 in the past year.

- NZPA