FLETCHER’S PROFIT UP

Press, Volume CIV, Issue 30793, 3 July 1965, Page 20

FLETCHER’S PROFIT UP

Tops £lm For First Time (N.Z. Press Association) AUCKLAND, July 2. Consolidated net profit of Fletcher Holdings, Auckland, topped the £lm mark for the first time in the year to April 30—rising by 22.6 per cent to £1,019,947. Result was after £66,677 more at £547,058 for depredation and £191,725 more at £889,537 for tax. - Earning rate on shareholders’ funds up from £12,057,664 to £13,153,178 rises fropi 6.9 per cent to 7.8 per cent in the latest year. Total dividend is unchanged at 10 per cent, requiring £585,022 against £498,792 last year. During the year a premium issue was made , lifting the premium on shares reserve by £493,118 to £3,008,308. Total capital and revenue reserves are , £6,309,879, against £5,467,992 last year. Carry-forward is £1,863,668 against £1,568,252 brought in. Turn-over Record Turn-over was a record for the fifth year running. It was £37,764,267 —13 per cent mor» than the £33,329,935 last year. The result was very satisfactory, but not unexpected, said the managing director (Mr J. C. Fletcher) in his report. “We believed that once we had reached the peak of our investment programme there would be a steady rise in profitability as new assets began to make their contribution to earnings.” During the year a private placement of £253,300 was made at a premium and £700,000 registered notes were converted into ordinary shares lifting ordinary capital from £5,789,672 to £6.509,966. Most of the private placement was made to purchase a 30 per cent interest in the Colonial Ammunition Company.

The group’s investment in companies, other than subsidiaries, where it holds 10 per cent or more of the equity capital was £3,277,786. Share of the profits in the companies is £249,255 against £102,355 last year.