Company News ALLOY STEEL YEAR

Press, Volume CII, Issue 30144, 30 May 1963, Page 17

Company News ALLOY STEEL YEAR

24 p.c. Drop In Profit

Alloy Steel (New Zealand), Ltd., Christchurch, made a net profit of £9509 in the year ended March 31, 1963. This figure shows a drop of £2943, or 23.6 per cent., on the 1961-62 result; the previous year profit fell £362 from the 1960-61 record profit

The latest result is reached after provision of £2121 (down £764) for depreciation and £8458 (down £4039) for taxation. Two new items this year are over-provision for tax last year, £390, and depreciation written back, £3OO.

Dividend Reduced Recommended final dividend, as announced earlier, is 8| per cent., making 10 per cent, for the year on capital increased by a two-for-five bonus issue. This is equivalent to 14 per cent, on the old capital, compared with 15 per cent, paid last year. The latest profit is equivalent to 11.3 per cent, on capital and 8.44 per cent, on shareholders’ funds, compared with 20.9 per cent, and 11.2 per cent, respectively last year.

The dividend requirement this year is £B4OO and general reserve, which last year was increased by £3OOO. receives no appropriation. The bonus share issue required £24,000, which £22,000 was financed by a transfer from general reserve and £2OOO from unappropriated profits: The profit from manufacturing fell £7513 to £19,051. Directors report’that orders received during the first eight months of the year declined by some 28 per cent, but an improvement followed and over the whole year the tonnage was down 15 per cent. “During the whole year the building and associated trades have experienced a difficult period, and consequently the demand for replacement’ parts for stone crushing equipment—which forms a very substantial part of our business—has fallen.” Capital £84,000

Paid capital was lifted from £60,000, in £1 shares, to £84.000, by the bonus issue. Shareholders’ funds rose from £110,848 to £112.6+7, and current liabilities fell £6661 to £22,338. Current assets are £8179 lower at £47,667 and investments and advances rose £5OOO to £27,993. Fixed assets have been-written down by £1683 to £39,325.