AUSTRALIAN ALLOY STEEL

Auckland Star, Volume LXX, Issue 306, 28 December 1939, Page 3

AUSTRALIAN ALLOY STEEL

CHANGED METHOD OF CONTROL.

Though the alloy foundry had been closed temporarily, said the chairman, Mr. W. K. Garnsey, at the annual meeting of the Australian Alloy Steel, Ltd., held in Sydney, a profit had been shown since the end of the trading year on .Tune 30, after meeting all overhead and depreciation charges. The directors expected tlhe improvement to continue.

Relating the reorganisation measures, Mr. Garnsey said that a year ago it was apparent to those of the present directors who were then on the board that the board was not functioning properly. After interim accounts had shown that the company and Hadfields (Australia), Ltd., its subsidiary, had made considerable losses, the board decided that the control of the company must undergo a change, and he (Mr. Garnsey) was appointed chairman, and subsequently Mr. A. C. Waters was secured as managing director.

The company, whioh has a large number of shareholders in New Zealand, and also a subsidiary in the Dominion, has hod some renmrkable ups and downs in the past two years. The subsidiary. Alloy Steel (N.Z.), Ltd., was formed in 1036 to take over a foundry business in Christehurch.

While the parent firm has struck hard times, the New Zealand subsidiary has made remarkable progress, profits earned amounting to £1179 in the first year of operation, £4119 in 1938, and £12,734 in "the past year. This year a dividend of 7 per cent, plus a bonus cf 1/ a share, was paid, making a total distribution of 12 per cent.