PHILLIPS AND IMPEY

Press, Volume C, Issue 29679, 24 November 1961, Page 17

PHILLIPS AND IMPEY

Net Profit Down 6.8 Per Cent. fN-Z. Press Association) AUCKLAND. Nov. 23. In spite of record sales, consolidated net profit of Phillips and Impey. Ltd.. Auckland paint, glass, and wallpaper merchants, eased £5494, or 6.8 per cent, from last year’s peak of £ 70,230 in the year ended August 31. The take-over of Hill and Jackson. Ltd.. Wellington, will provide further trade and retail outlets for paint and other products, the directors say. In Christchurch, a large commercial site with buildings was acquired for a share consideration. The Wellington and Christchurch deals involved the issue of 38.400 £1 shares. Capital profit on these transactions was £54,674. Capital Increased

The directors propose an increase in nominal capital from £300,000 to £750,000. However, in spite of capital expendture of about £200,000 in two years no cash issue has been necessary. Instead, mortgage finance has been arranged since the balance date. Profit was struck after providing £5902 more for depreciation at £18.505 and £6485 less for taxation at £77.455 and after deduction of £3556 (last year £4660) minority interests. Earning rate on average capital fell from 32.3 per cent, to 28 per cent.: that on average funds from 14.5 per cent, to 11.7 per cent. The steady 13% per cent, dividend takes £39.655 (£34.375), leaving carryforward of £144,493 (up £35,581). NEW ZEALAND NEWSPAPERS One-For-Two Bonus Issue Directors of New Zealand Newspapers, Ltd., are recommending a one-for-2 bonus issue, which will increase paid canital by £599.000 to £1.797.000 ' They also propose to lift nominal capital by £1.2 million to £3 million. The issue will be made on holdings as at December 4. It will be in two parts: One distribution in the ratio of one-for-4 will be made by capitalising £299.500 of undistributed profits earned prior to March 31, 1957. Second Distribution

A second one-for-4 distribution will be made from capital reserves, in the latest balance sheet at £ 194,376. but now increased by a revaluation of land and investments.

This part of the bonus issue also requires £299 500.

Shareholders will be asked to approve these recommendations at a meeting to be held on December 14. Approval has been given by the Inland Revenue Department to these proposals. They remain subject to approval by the Capital Issues Committee.

Vibrapac Interim Dividend Steady

Directors of Vibrapac Blocks, Ltd., Christchurch concrete masonry manufacturer, have declared an interim dividend of 5 per cent.: payable December 1, ex dividend November 30.

Last year’s interim 5 per cent, was followed by a final 5 per cent., making 10 per cent, for the year.

Turnover for the six months ending September 30 showed an increase of over 10 per cent, against the same period last year, directors say. However, expenses were higher and net profit did not reach last year's figure. Current sales are above last year’s level.

The loss on the South Canterbury subsidiary has been substantially reduced, they add.

Cyclone Issue.— Directors of Cyclone Industries (N.Z.). Ltd., announce that the issue of 34.000 £1 ordinary shares at a 2s M permium has been fully subscribed.

Taubmans Div. Down.— Taubmans, Ltd., paint maker, is reducing the ordinary dividend from 12% per cent, to 10 per cent., including a final 5% per cent, for the year ended September 31. Group sales and profits were lower for most of 1961, but are now showing increases on the comparable figures for 1960, directors report.