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Allied still optimistic despite 2pc profit drop

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Allied Group, the financial services, property and industrial group, suffered a 2 per cent slide in attributable profit to $87.9 million in the six months ended June.

The group, which includes listed companies Allied Properties and Allied Industries International, has however painted an optimistic picture of the second half, with improved contributions expected from financial services and property.

At Allied Group, operating profit rose from $66.4 million to $100 million but contributions from associates dropped from $47.4 million to $38.9 million and payments to minority interests rose from $13.9 million to $30.9 million.

Earnings per share were unchanged at 2.9 cents.

Directors said no payout was being made to shareholders to retain funds to expand its consumer finance division, United Asia Finance.

An exceptional loss of $322,000 was incurred during the period relating to professional fees in connection with the investigation ordered by the Financial Secretary into the group's affairs four years ago.

Turnover rose 26 per cent to $322.39 million during the period, up from $255.57 million.

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