FINANCE CORPN.

Press, Volume CIV, Issue 30873, 5 October 1965, Page 20

FINANCE CORPN.

Big Lift In Profit (N.Z. Press Association) WELLINGTON, Oct 4. Accounts of Finance Corporation of New Zealand for the year to March 31 last show net profit at £13.509, against £3761 the previous year. Result is reached after provision of £476 (nil in 1964) for tax. The chairman (Mr R. A. Brierley) says tax concessions arising from the treatment of note flotation expenses have now been exhausted and it will therefore be necessary to provides a higher proportion of earnings for tax in future. Income was £40,248 (£8247). consisting mainly of interest amounting to £37,982 (£6716) from the holding company. Expenses were £26,739 (£4486), including interest £19,766 (£2499), working and management expenses £3961 (£981) and proportion of deposit note flotation expenses £2574 (£700). Dividend raised from 81 to 10 per cent takes £5OOO (£1925) and is covered 2.7 times. Dividend has been paid on capital increased from £40,000 to £50,000 by a one-for-four bonus issue, and is equivalent to 12| per cent on pre-bonus capital. There has been an 80 per cent increase in the dividend rate since 1962. Reserves are £11,988 (£3955), making shareholders’ funds £61,988 (£53,955). Current assets included advances to the holding company R. A. Brierley Investments, £288,000 (£141,700). Directors say they have followed a conservative policy. “The principal activity has become of acting as financier to the Brierley Group of companies, which enables very profitable utilisation of funds, combined with complete safety of capital,” they said.