TAPPENDEN MOTORS

Press, Volume CVI, Issue 31247, 20 December 1966, Page 31

TAPPENDEN MOTORS

Interim Profits Edge Down

(N.Z. Press Association)

AUCKLAND, Dec. 19.

Profits of Tappenden Motors, Ltd., Auckland Vauxhall and Bedford distributor, for the first six months of the current year were slightly less than those for the corresponding period last year, says the interim report There was a small increase in sales.

However, the resulting increase in gross profit was reduced by higher costs, it says. Although there may be some reduction in the full year’s profit the directors felt that in the ordinary course of events, a satisfactory result would be achieved. As announced, the interim dividend bad been increased from 5 to 5 5/6 per cent, but the total for the year was expected to be steady at 12} per cent

No Immediate Benefit The report says no immediate benefit would result from the formation of a new wholly-owned finance subsidiary, Tappenden Group Finance Company, Ltd., as initially this company would be absorbing hire-purchase contracts held by the parent company, until the paid-up capital had reached £lOO,OOO. But it was anticipated that next year a debenture issue would be made to increase the funds available for finance.

In the long term this subsidiary would expand its activities and add to the overall profitability of the group. A satisfactory volume of noremittance sales was being maintained with the other models.