Rob Flannagan says it's almost steady as we go after Tower NZ's first interim result as a standalone unit. Photo / Martin Sykes
In a familiar refrain, Tower New Zealand has again said shareholders' four-year wait for a dividend is almost at an end.
The company, which reported its first interim result yesterday as a standalone unit after separating from its larger Australian subsidiary, has not paid a dividend since 2003.
"I suspect that towards the end of the year we'll be saying that there's a dividend," said Tower NZ chief executive Rob Flannagan.
The company's board was considering the issue and mulling whether a return would be paid before the end of the financial or calendar year, he said.
A year ago, the pre-split group's chief executive, Jim Minto, made a similar statement, but the issue was sidelined by the separation, effected in late November.
However, the split did result in a $198.8 million one-off for the New Zealand unit in the six months to March.
The sum comprised two months' contribution from the Australian division, which was technically a subsidiary of the New Zealand unit.
It also represented repayment of money borrowed by Tower Australia via its New Zealand parent.
One-offs aside, Tower NZ's net profit was $15.7 million, up from $10.9 million a year earlier. But Flannagan said this year's number was distorted by a much lower tax bill.
He said the pre-tax profit, which at $31 million was up only marginally on a year ago, gave a better indication of trading.
"I'm quite comfortable with the result. I'm not unpleased with it, especially given we've invested a fair bit in our compliance for KiwiSaver, the new taxation regime and for other provisions.
"It's almost steady as we go, and we've got our base right to grow from there."
Flannagan said the full-year, pre-tax profit was likely to be similar to last year's $41.9 million or "a little bit up".
Flannagan said the division was affected by a $2.9 million claim related to the Tongan rioting over the period.
Tower NZ shares closed 1c higher at $2.34 yesterday.
