With effect from the financial year 1979 a provision has been created for
the extra costs that are to be anticipated in connection with the transfer
of staff members to Utrecht, where we shall establish our new
headquarters in the course of 1982.
For 1979 an amount of 1,25 million has been added to this provision
to the charge of the profit and loss account, which amount has been
accounted for under Sundry gains and charges (of which 950.000 has
been charged to the Finance business and 300.000 to the real estate
companies and other diversifications). The book profit of 1,3 million
obtained on the sale of our former office building at Rotterdam has also
been accounted for under Sundry gains and charges.
An amount of 10,5 million (in 1978: 10,3 million) was added to the
Provision for general contingencies.
With effect from 1979 the combined balance sheet of the real estate
companies and other diversifications includes the figures of the 100%
interest in the Kok Group International that was acquired in that year
and that in Gebam, the interest in which was extended to 100% in 1979.
In 1978 the 50% interest in this company was included under
Participations. In the combined profit and loss account the results of
these participations have been taken up from the date on which
the 100% interest was acquired.
The increase in the result of the real estate companies and other
diversifications can entirely be attributed to the higher result on sales.
This is partly offset by a strong rise in general expenses, which is partly
connected with the higher sales result and is for the rest the result of
the situation in the participations mentioned above.
Part of the increased expenses is the result of the reorganisation of the
Kok Group that was carried through during the past year. The costs
involved have entirely been charged to the results for 1979. We are
confident that partly as a result of this reorganisation this company will
make a satisfactory contribution to the result in the near future.
Furthermore, the results underwent the influence of the sale of highly
profitable real estate, against which new objects with a lower initial
yields were acquired. These objects, mainly located in foreign countries,
may be expected to show proper growth opportunities in the future.
In 1979 an amount of 2,5 million was added to the Provision for
non-occupancy, against 4 million in previous years. This lower addition
reflects our expectation that for the coming years a smaller non
occupancy loss than has been the case until now can be reckoned with.
The contribution to the result of the Securities business lagged
considerably behind that of 1978 as a result of this market situation.
In view of the less favourable prospects in our branch we expect that
the financial year 1980 will not show the same result as that of 1979.
We propose that for the financial year 1979 a cash dividend of
4,30 per share of 10 be paid.
