Tower posts $20.5 million half year profit

Tower Limited today announced a net profit after tax (npat) of $20.5 million for the 6 months ended March, a turnaround from a net loss of $154.4 million for the same period the previous year.

Earnings per share (EPS) for the six month period were 5.0 cents on the expanded capital following last year's capital raising. No dividend was declared.

Group operating earnings grew to $14.6 million, compared to a net loss of $4.3 million in the same period last year.

Tower chairman Olaf O'Duill said Tower was 15 months into a group-wide programme of change.

" Growth in profitability has been driven by a combination of continued operational improvements and a strengthened capital position supported by favourable investment markets," Mr O'Duill said.

Group managing director Keith Taylor said while the half year result was pleasing there was still much to be done before the group reached its potential.

" Over the next six months the focus will be on further improving operational performance and further building momentum in earnings growth," he said. Tower shares were unchanged at $1.49 at 11am, having traded between $1.015 and $1.76 over the past 12 months.

- NZPA