Skellerup Ind. Record Profit

Press, Volume CVI, Issue 31211, 8 November 1966, Page 21

Skellerup Ind. Record Profit

Mainly because of financial reorganisation within the group, Skellerup Industries, Christchurch rubber goods manufacturer, increased profits by £82,412 —or 29.8 per cent—to a record £358,868 for the year to March 31.

The improvement resulted from an increase of £27,740 (10 per cent) in trading profit of the rubber subsidiaries and from the elimination of £54,672 arising from the operations of Dominion Salt included in the 1965 consolidated accounts.

As reported, Dominion Salt ceased to be a subsidiary of the Skellerup group as from June 30, 1965, and subsequently the capital structure was re-organised. All preference shares were converted into ordinary shares and capital was increased by the issue of 150,000 20s ordinary shares to Cerebos (N.Z.) Ltd., for cash. Result was after £149,590 for depreciation against £139,954 last year and £358,915 for tax compared with £322,144. As announced, dividend has been increased from 10 to 12.5 per cent and takes £76,448. £6969 has-been transferred to General Reserve leaving £1,567,857 to be carried for-

ward against £1,151,070 brought in. Shareholders’ funds are £2,776,683 (£2,353,675 last year) and earning rate is 12.9 per cent compared with 11.7 per cent. Capital is steady at £731,583. The current ratio improved to 1.9, bank overdraft being down £162,403 to £364,102.