HUMES IND. (N.Z.)

Press, Volume CIV, Issue 30858, 17 September 1965, Page 15

HUMES IND. (N.Z.)

Net Profit At Peak (NZ. Press Association) WELLINGTON, Sept. 16. A further increase in profits after extensive capital expenditure on additions and improvements is expected by Hume Industries (N.Z.) in the current year, directors report in the annual accounts released today. They say both the concrete and steel divisions of the company enjoyed buoyant trading conditions during the year, with increased sales. However, the effect of this was largely offset by an increase in costs and a rise of £25.990 in depreciation provision.

The accounts confirm net profit 5.7 per cent higher at a peak £140.911 for the year ended June 30. More For Tax

It was reached after providing £5025 more for taxation at £141,275 and the increased sum referred to by the directors for depreciation, up to £146,566. Trading profit rose by 9.6 per cent to £434.921, a steady £25.000 is transferred to general reserve, and the unchanged 5 per cent preference and 10 per cent ordinary dividends take £72,500, the same as last year. A total of £135.792 is carried forward to the balance sheet (last year £92,381) and helps increase shareholders’ funds by £81,661 to £1,283.054.

Earning rate to shareholders’ funds eases fractionally from 11.1 per cent to 11 per cent and that on steady ordinary capital of £600,000 rises from 20.1 to 21.4 per cent.