PROFIT LIFT BY K.D.V.

Press, Volume CIV, Issue 30846, 3 September 1965, Page 19

PROFIT LIFT BY K.D.V.

19 1 p.c. Rise To New Peak (N.Z. Press Association) AUCKLAND, Sept. 2. The 191 per cent increase in group profit for the year to June 30 reported by K.D.V. Industries, Auckland timber merchants and rainwear manufacturers, was mainly because of a 24 per cent rise in profit in the timber division.

Sales of the rainwear division rose by 12 per cent and profit by 11 per cent to set records in both cases.

Total profit of the group was up by £5927 to a record £36,148, lifting earning rate on average funds from 13.2 per cent to 14.9 per cent. The rate on steady capital of £150,000 increased from 20.1 per cent to 24.1 per cent. For the whole of the year there was a high level demand in the building industry which shows no sign of slackening, the chairman (Dr. A. T. Begg) says in the annual report. Demand Met By utilising resources to capacity the timber division was able to meet this increased demand, with the result that its sales for the first time exceeded £500,000 — rising by £90,166 to £527,171. Record results achieved by the rainwear division stemmed in the main from a continuing increase in sales of waterproof school-clothing. Profit was reached after £4396 more for depreciation at £11,945 and £4917 more for tax at £33,246. Group sales were £101,036 or 19.2 per cent higher at £626,721, and expenses were £90,215, or 19.3 per cent up at £557,450. As reported, dividend will be lifted from 10 per cent to 12i per cent and will take £3750 more at £18,750. Shareholders’ funds are £17,398 higher at £252,053.

Cyclone’s Need For Finance

Proceeds from the £85,000 note issue by Cyclone Industries will be used to finance expansion, the chairman of directors (Mr C. S. Peate) says in a circular to shareholders. Since the end of the last financial year, business has continued at a buoyant rate, says Mr Peate. “This strong demand confirms the need for urgent completion of plans for expansion and development at Maces road and improvement of production facilities at Montreal street.”

This includes development of new products, installation of new plant and erection of further factory buildings.

Mating Dividends.— Maling and Company, Christchurch wine and spirit merchant and cider manufacturer, has declared a final ordinary dividend of 10 per cent and final preference dividend of 2| per cent, ex dividend on October 5, This makes a steady ordinary dividend of 15 per cent for the year.— (P.A.)