MOTOR SPEC. PROFIT UP

Press, Volume CIII, Issue 30558, 29 September 1964, Page 21

MOTOR SPEC. PROFIT UP

13 p.c. Rise To New Peak

(N.Z. Press Association) AUCKLAND, Sept 28. Consolidated net profit of Motor Specialties. Ltd., Auckland, reached a further peak with a rise of £14,420, or 13.4 per cent, to £121,868 in the year to June 30. The rise was not sufficient, however, to maintain the earning rate on shareholders’ funds raised by £275.862, largely by the one-for-four premium issue of October last year. Latest earning rate is 9.9 per cent, compared with 11.3 per cent previously. Profit is after a rise of 34.6 per cent the year before. It was struck after providing £15,850 more for tax at £121,750 and depreciation of £44.875 compared with £41,501. Gross profit from trading rose by £126,577 to £1,098.952, but expenses were £91,125 greater at £815,342. As announced, ordinary dividend is 10 per cent, compared with 11 per cent last year before the cash issue and the bonus one-for-five issue. It takes £17,420 more at £62,500. Carry-forward is raised from £106,697 to £160,751. Consolidated balance-sheet shows paid capital raised by the issues and standing at £725,200 compared with £510,000 previously. It includes £lOO,OOO in preference shares. Share Reserve With share premium reserve raised by a net £6608 to £40,108, premiums of £116,500 on shares issued during the year being mostly offset by the £104,200 capitalised in the bonus issue, shareholders’ funds total £1,226,059 against £950.197. Current liabilities amount to £1,023,295, an increase of £13,251. Bank overdraft has been reduced from £229,291 to £126,293. but creditors are up from £649,003 to £742,392. Current assets have risen by £238,932 to £2,041,497. Stocks are £157,610 greater at £1,393,950 and debtors £81,039 higher at £645,296. Fixed assets are shown at £539,240, a rise of £75,964 while term liabilities are up £30,000 at £400,000. Investments are £68,617 compared with £64,400. The chairman (Mr J. F. Johnston) announces that during the current year expansion or new premises are planned in Napier, Masterton, Palmerston North, Wellington and Christchurch, while a new branch will be established in Greymouth. During the last year new warehouses were opened in New Lynn, Grey Lynn, Whakatane and Wanganui, while new premises were occupied in Hamilton, Rotorua, Lower Hutt and Oamaru.