Wright, Stephenson Profit Up 10 p.c.

Press, Volume C, Issue 29634, 3 October 1961, Page 19

Wright, Stephenson Profit Up 10 p.c.

(New ZeotaM Press Association) WELLINGTON, October 2. Group net profit of Wright Stephenson and Company. Ltd., for the year to June 30, 1961, was £620,608, against £565,106 the previous year, an increase of £55,502, or 9.8 per cent.

Earning rate on higher ordinary capital fell from 162 per cent- to 15.4 per cent., and earning rate on shareholders’,funds from 710 per cent to 6.51 per cent. The result Is readied after provisions ot - £WjM3 (£280,825 last year) for depreciation. £678,883 (£583.060) for tax and after deduction of £lO6B (£S9Q) for minority intereste. - Trading ' profit was £1227,734 (£1.098236), and investment income £72,915 (£50222). Preference dividend of 5J per eent takes £51,000 (£50,808), Steady ordinary dividend of 10 per cent, takes £366,460 (£279500) and is covered 1.6 times. Total dividends of £407,460 take 66 per cent, of the year’s tax paid rttoflt. Centennial Benns No provision is made in tile accounts for the proposed tax-free centennial bonus dividend of 254 per cent., which will take £92277 from capital reserves. - No provision is made, either, for the proposed one-for-4 bonus share issue. Of this issue, £692,829 from capital reserves. will be taxfree and £230,943 from profits earned before 1957 will be non-assessable income. After the issue, the balance of pre-1957 profits Win be £432,649. Proposals for the centennial dividend and bonus issue will be submitted to the annual meeting. The -consolidated accounts show paid capital at £•3,695,088 (£3,171,046) ordinary and £1,020,000 (£1,020,000) preference. Reserves total £4,813374 (£3.766.818), including £2,425,172 (£1276270) in capital reserves. Shareholders’ funds are £9227.462 (£7,957364). Convertible debentures - of £500,000 bring capital funds to £10,028,462 ( £8,457364). Current assets are £ 14326344 (£ 12,716376), current liabilities £4336578 (£5,727,828), fixed assets £5,722,194 (£4,182,629), fixed liabilities £5,691,796 (£3,159,507), shares 'in and advance to subsidiaries £294,540 (£465,747), interest of minorities in subsidiaries

r £5122 (£20.063). intangible k assets £lB2BO toil). J Mortgage Leans Up ) Current assets include term loans on mortgage £1.150279 r (£435261). hire-purchase aci counts £679238 (£573244). ■ debtors and advances at call j £7,701222 ( £6200,702), stock r £3,630200 (£1,762262), Gov-: i ernment and local body stock! £1210066 (£878233), and; , cash £278,446 (£1416232). i Current liabilities include > customers* call deposits £2,321,750 (£3,465263) and t creditors £1,612,193 ) (£1294,531). r Innes, Placements ’ During the year 524,042 3 ordinary shares were issued 1 for a total of £1,130,437, Of ’ these, 200,000 were placed in : London, mainly with trusts, and 161,042 were issued in New Zealand in connexion with the acquisition of one 1 subsidiary company, inter- ■ ests in associated companies 1 and the purchase of several r small businesses, 5 Premium on the combined • total of 361,042 shares was £006,385, an average of 33s ’ * share. In addition, ■ 163,000 shares were allotted ’ in , exchange for the share--1 holding in three other newly- • acquired subsidiaries. J No dividends or other ini come were received from the ■ new subsidiaries, the chair- ! man, Mr C. U. Plimmer. 3 states in his review, and, because of the timing of the ■ private placements, very 3 little income was received - from that additional capital, otherwise the yield on 3 shareholders’ funds would t have been higher. J “A Good Tear" . Mr Plimmer says that on I profit results the year was f good, but had trading condii tions been maintained it . would have been better ! Prices of some lines handled on commission receded. Earnf tags of overseas branches j were adversely affected by lower dairy produce and, . seed prices. But for the company’s I general trading activities and j diversiflation in directions I not solely related to farming, I the results would have been [ less rewarding. ! . T Tur ®? ver of the group in . New Zealand and overseas , was £4298,685 up at ; £59,856,586, and turnover of the New Zealand organisation was £4356,078 up at £54.808,497