Company News ANDREWS & BEAVEN

Press, Volume CII, Issue 30269, 23 October 1963, Page 22

Company News ANDREWS & BEAVEN

Profit Eases 3 Per Cent

Lower selling prices were partly responsible for a 3 per cent decline in the net profit of Andrews and Heaven, Ltd., Christchurch manufacturers of agricultural and industrial machinery, in the year ended June 30. The latest profit is £70,707, a decline of £2090. The previous year profit rose £9570 to a record £72,797. The 196263 figure is reached after provisions of £27,692 (up £3233) for depreciation and £68,804 (down £3275) for taxation. It represents an earning rate of 8.80 per cent on shareholders' funds, compared with 11.60 per cent on higher funds last year. The earning rate on ordinary capital fell from 36.3 per cent (before the cash and bonus issues) to 20.1 per cent.

Ordinary dividends paid this year were an interim of 5 per cent and a final of 4 per cent on amounts paid up and require £22,320, compared with £lB,OOO for the previous year’s 10 per cent dividend. Preference dividend is steady at 5 per cent and requires £7500. Last year's proposal to increase the preference dividend to 5} per cent was defeated, and no reference is made to it in this year’s annual report. The transfer to general reserve this year is reduced from £50,000 to £40,000 and carry-forward is steady at £33,727. Sales Maintained

Gross profit rose £2793 to £270,537 but expenses rose £9082 to £89,155. Directors say that sales have been maintained at a satisfactory level “although there could be grounds for disappointment in the fact that an increase has not been achieved coinciding with the increase of liquidity brought about by the recent issue of ordinary shares.” New premises and equipment are not yeit in use, they say. Preference capital remains at £150,000 in £1 shares and ordinary capital has been lifted from £lBO,OOO to £314,000. Shareholders’ funds are £173,315 higher at £800,931. Mortgage debt rose £17,801 to £141,174, and convertible notes are steady at £65,000. The £1 notes are convertible into ordinary shares on June 30, 1965, in the ratio of one for one, subject to adjustment because of the bonus issue to ordinary shareholders. Current assets rose £48,378 to £1,018,457, mainly because of a £41,789 increase in stocks. Current liabilities fell £68,807 to £480,966; overdraft is £46,813 lower at £ 122,415. Investments are £8043 higher at £29,264 mainly because of a £7320 rise to £17,320 in shares in other companies. Fixed assets rose £65.888 to £440,350, land and buildings being shown at 1959 valuations.