Company News N.Z. NEWS YEAR

Press, Volume CII, Issue 30152, 8 June 1963, Page 16

Company News N.Z. NEWS YEAR

Lower Profit Explained (N Z. Press Association) AUCKLAND. June 7. Business conditions improved after a slow start and results of New Zealand Newspapers. Ltd., for the year to March 31 were considerably better than forecast the chairman. Mr E H. Rhodes, says in the annual report. Consolidated net profit, as announced earlier, eased £2618 to £288,331. The result was after providing £26.816 more for dei preciation at £237.404 and £332 less for tax at £363,164 As in previous years, depreciation exceeded rates allowed by the Inland Revenue Department. Directors consider additional depreciation of machinery and plant necessary to cover ade- • quately wear and obsolescence.

Profit was also after deduction of minority interests. £l9OO lower at £5552. The result represents 10.9 per cent, on average funds and 16 per cent, on capital, compared with 11.8 and 16.2 per cent, respectively the previous year.

As announced, dividend is 8i per cent., requiring £154.105. An amount of £40,000 has again been written off the interest in the New Zealand Press Association, reducing this item to £40.705. No further writing down of the shares in Bay of Plenty Airways (in liquidation) is provided for. as the amount receivable will be in excess of the present book value. Sales were 5.7 per cent lower at £4.419,461, while expenses were reduced by 5.9 per cent, to £3,765.107. Both the “Auckland Stat” and the “Christchurch Star” experienced a satisfactory year, Mr Rhodes says. Circulations increased. Business conditions improved sufficiently toward the end of the year to make an increase in the selling price of newspapers, forecast last year, unnecessary, except in some country areas.