Broadway's half year net profit falls sharply

Investment company Broadway Industries said its December half year net profit fell sharply to $246,000 from $958,000 a year earlier.

The company said that due to strong cash flows, the interim dividend would be be maintained at 2 cents per share, to be paid on April 28.

The company said it anticipated "a much improved performance in the second half year".

It said it would be consistent with last year's $900,000 to $1.2m annual result.

The operating surplus before taxation fell to $401,000 from $1.44 million.

Sales for Broadway's HE Perry unit fell to $8m from $9.4m but pre-tax profit rose to $451,000 from $139,000.

Sales for another unit, Mercer, fell to $11.7m from $13.7m but its surplus dropped to $194,000 from $1.5m.

Mercer's new Cartonless Cheese product had received an order for $3.5m.

The company had now received funding for the development of a device to measure the fat content of meat.

Broadway's cash flows improved to $1.7m from $1.2m.

Broadway shares last traded at 89c. They have traded between 80c and $1.23 in the last year.

- NZPA