Schaffer posts $16.6m profit

SCHAFFER Corporation has posted a $16.6 million group net profit after tax, down 2 per cent on 2002-03 financial year.

The company has announced it will pay a 50 cents a share fully franked dividend, bringing the full year’s dividend to $1.

It is also paying a special dividend of 20 cents a share fully franked, added to the 20 cent a share dividend it paid earlier this financial year.

Schaffer chairman John Schaffer said the company’s year had been strong despite difficult trading conditions and adverse currency movements.

"A decrease in recurring earnings driven largely by the appreciation of the Australian dollar was largely offset by the ongoing profitable realisation of the company’s investment property portfolio," he said.

Currency movements accounted for more than 90 per cent of the $3.1 million reduction in net profit after tax from recurring earnings of $13.8 million.

"For every US cent the Australian dollar rose, our earnings before interest and tax at Howe Leather decreased by $340,000.

The company has predicted tough trading conditions to continue, particularly in the first half of 2004-05.

However, Mr Schaffer said the company planned to maintain its $1 a share fully franked dividend in 2005 and pay a further 60 cents a share fully franked in special dividends over the next three years.