Phillipps And Impey Gross Profit Rises

Press, Volume CI, Issue 29983, 19 November 1962, Page 16

Phillipps And Impey Gross Profit Rises

(New Zealand Pres* Association)

AUCKLAND, November 18. Substantially higher depreciation and interest charges arising from the increased investment in new buildings and plant resulted in net profit of Phillipps and Impey. Ltd., Auckland, oil and colour merchant, falling further during the year ended August 31. Consolidated net profit, at £70,970, was £4366. or 5.7 per cent, lower than in 1961, when earnings fell by 6.8 per cent. It was reached after deducting minority interests, £449 higher at £4005. Tax provision fell by £5676 to £56.807, but depreciation rose from £18.505 to £25.833. The issue of £16.178 ordinary £1 shares lifted paid capital to £304,578, on which the unchanged 131 per cent, dividend requires £43,039 against £39.655 last year. Bonus Issue As previously announced the company proposes to make a one-for-two bonus issue followed by a one-for-six issue of convertible notes on the higher capital. The £1 shares will then be subdivided into unit* of 5s each. Paid capital after the bonus Win be £456,867 in 5s shares. The notes will be convertible into ordinary shares in 1967. After the transfer of £7807 to general reserve, which received no transfer last year, and writing-off of £llBO in underprovided tax. the carry-forward is £18.9*4 higher at £163,437.

Gross profit from trading operations increased by £6604 to £185,168 and other income totalled £2046 against £2952. Expenses. excluding depreciation, were £7863 higher at £14,628. Revalued In the consolidated balancesheet, fixed assets have increased by £178,171 to £708,158, the book value having been brought closer to the Government valuation. Capital reserves are shown at £214,945, compared with £58.960 last year, the latest total including £93.822 in share premiums. Revenue reserves total £224,985. against £217,178. Term liabilities have increased sharply from £28.006 to £139,130, while current liabilities are £137,806 lower at £252,109. These include bank overdraft reduced by £120.942 to £56.807, and creditors £10,302 lower at £93.101. Current assets have fallen £l*23 to £588.232. with debtors up from £228.543 to £229,708. Stocks are £9113 lower at £3*2.969, while bank balances total £15.625 against £9lOl. The company’s investments, shown at cost, are £*osl less at £35,350. A new addition is a holding of £39*9 in Government Stock.

Turnover for the year was slightly higher, but was affected by unsettled conditions in some major lines, add the chairman, Mr T. R. Sussex, In his report.