Liquidations to eat into Bendon fund

By DITA DE BONI

Overseas expansion and the liquidation of extraneous companies will reduce the Bendon Group's healthy slush fund in the next financial year.

But speaking at the company's annual meeting yesterday, chairman Ian Parton said that the newly renamed company looked on course to deliver improved pre-tax earnings from Bendon operations of $7.9 million by March 31, 2001.

An interim dividend of 4c per share will be paid on August 30, from the latest trading results of the now-divested china clays division.

To March 2000, the company turned in pre-tax earnings of $10.26 million, representing the combined profits of New Zealand China Clays and Bendon. Non-recurring costs, mostly from the closure of Bendon manufacturing plants in small towns, totalled $11.1 million.

This year, the liquidation of a slew of companies that comprised the old Ceramco Group will see a further large bill, but will eventually allow more than $16 million to be returned to the company's shareholders.