ZIP EARNS 10.7 p.c.

Press, Volume CVI, Issue 31188, 12 October 1966, Page 21

ZIP EARNS 10.7 p.c.

Profit Half Of Forecast

(N.Z. Press Association) WELLINGTON, Oct. 11

Zip Holdings earned 10.7 per cent on the £l.2m capital employed in its first term as a listed public company—a year in which group net profit was less than half the prospectus forecast. As announced earlier, taxpaid result for the year to June 30 was sharply down on estimates after poor performances by some of the group’s manufacturing units. Net profit shown in the full accounts released today was £128,184, compared with £196,862 last year and approximately £280,000 forecast in the prospectus. Ordinary dividend of 71 per cent compares with the 121 per cent forecast when the public placement was made last year. It takes £90,000 and is covered 1.4 times.

Earning rate was 10.7 per cent on capital increased last December.

Earning rate on shareholders’ funds, lifted from £787,778 to £1,621,064 during the year, was 8 per cent. Group sales at £4.6m were £474,000 higher than last year, but achieved only 86 per cent of the budget figure, says the. chairman, Mr F. H. Kember.

Net profit was after £28,738 more depreciation at £98,466 and £44,087 less for tax at £138,020.