32 cents dividend being paid Nice. Price is now $7.25.Double...

32 cents dividend being paid Nice. Price is now $7.25.


Double digit growth ahead for Patrick
Nov 17 10:01
AAP

Takeover target Patrick Corp said it expected double digit profit growth for the next two years.

Patrick reported a net profit of $169.93 million for 2004/05, down from the $215.24 million achieved in the previous year.

"Patrick is forecasting double digit profit growth for the next two years as our long-term strategies bear fruit, particularly through capacity expansion and investment in the ports businesses," the company said in a statement on Thursday.

"Virgin Blue is also entering an exciting period which we believe will see the value-based airline reach its full potential in the Australian market."

Patrick holds 62.5 per cent of Virgin Blue.

The company said the profit result reflected continuing strong organic growth and cost control in the ports and some rail operations as it invested to increase capacity.

"Once again the strength of our strategic ports and rail investments has underpinned another good result for Patrick shareholders," managing director Chris Corrigan said.

Mr Corrigan said Patrick remained "committed and confident" with regard to Virgin Blue.

Patrick assumed control of the airline in March this year.

"The airline has been performing strongly since August as capacity aligned more closely with demand and the airline focused on improving the quality of its revenue streams," he said.

"Market initiatives such as web check in and the Velocity Loyalty program have been well-received and we believe will deliver both for airline guests and our shareholders."

Excluding individually significant items, Patrick recorded a net profit of $200.8 million in 2004/05, an increase of 6 per cent over the previous year.

Patrick declared a special dividend of 24¢ per share alongside a final dividend of 8¢.

The total fully franked dividend paid for the year was 39¢, up from 13¢ in the previous year.