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SCMP Reporter

ALLIED Group will cut its full-year dividend by 57 per cent, despite an 18 per cent rise in last year's profit.

  The group's net profit was $221.5 million for the year to December 31, against $187.7 million in 1993.

  A final dividend of 0.5 cent per share was proposed, which brought the total payout for the year to 1.5 cents, compared with a full-year dividend of 3.5 cents for 1993.

  The dividend was cut to allow more funds for expansion, particularly in the company's personal finance business and the anticipated share buy-back programme.

  Company chairman and chief executive Brian O'Connor said Allied was planning to buy back its own shares because the stock was one of the best buys in Hong Kong, given the current price.

  'Allied Group achieved satisfactory results for the year under review,' he said.

  'The service business continued its expansion, strong growth was achieved in properties and, after a difficult period, a base for sustainable growth has been established in industries.'   Turnover fell 57.3 per cent to $373.5 million from $874.7 million in 1993.

  Taking into account a 20.7 per cent rise in shares in issue, earnings per share were 7.2 cents, compared with 7.4 cents previously.

  Shareholders' funds rose 11.9 per cent to $3.3 billion with total assets growing 7.6 per cent to $3.8 billion and total liabilities dropping 18 per cent to $464 million.

  An exceptional loss of $7.3 million was booked, against a $88.3 million loss in 1993.

   Exceptional items included $13 million goodwill and translation reserves written off in respect of subsidiaries, and professional fees of $4.4 million used in the investigation ordered by the Financial Secretary.

  The investigation triggered a major corporate reorganisation which included turning Allied Properties (HK) and Allied Industries International from subsidiaries to associated companies in the middle of 1993.

  At listed Allied Properties, net profit rose 13 per cent to $650.3 million while turnover slumped 24.9 per cent to $765.1 million.

  Earnings per share were down 11.2 per cent to 26.9 cents on a 27.3 per cent increase in shares in issue.

  A final dividend of four cents per share was recommended, bringing the total dividend for the year to seven cents - the same as in the previous year.

  Rental properties contributed about $210 million last year.

  Delays in operational start-ups which resulted in lower-than-expected contributions saw Allied Industries report a loss of $23.9 million, compared with a profit of $22.9 million in 1993.

   Loss per share was three cents, against earnings of 2.9 cents previously. No dividend was declared.



Allied Group cuts payout to raise funds for expansion