M.K.M. LIFTS PROFIT

Press, Volume CIV, Issue 30725, 14 April 1965, Page 21

M.K.M. LIFTS PROFIT

Result Is Just Below Peak (N.Z. Press Association) AUCKLAND, April 13. M.K. Manufacturers, Auckland textile group, raised consolidated net profit by £lB4B, or 5.1 per cent, to £38.010 in the year to December 31. This was only £476 below the 1961 peak of £38,486. Profit before tax was a record. However, the increase was not sufficient to maintain earning rates, that on average funds slipping from 11.2 per cent to 10-7 per cent. Earning rate on average capital fell from 23.6 per cent to 23.4 per cent. The result, including nine and a half months’ trading by Klippel Bros. (N.Z.), was struck after providing £3694 more for depreciation at £12,734 and £1975 more for tax at £35,869. Steady 10 per cent dividend takes £16,225. Trading conditions in the fashion industry have remained very competitive, the chairman (Mr I. M. Chambers) says in the annual report. To warrant the continuance of some of the manufacturing divisions a higher level of efficiency has to be achieved. Directors have, therefore, approved a plan for reorganising activities in a manner that will result in greater production efficiencies and lower overheads. The balance-sheet shows shareholders’ funds £39,597 higher at £373,397, including capital, all ordinary £lB,OOO up at £171,000. Since balance date capital has been increased to £250,800 by a one-for-three premium issue (£57,000), and a one-for--10 bonus issue (£22,800).