A.G.S. PROFIT UP 18 p.c.

Press, Volume CVI, Issue 31326, 23 March 1967, Page 19

A.G.S. PROFIT UP 18 p.c.

Affected By Govt. Stock (N.Z. Press Association) AUCKLAND, Mar. 22. Associated Group Securities, Ltd., Auckland financier, increased its group profit by £3625, or 18.1 per cent, to £23,700 in the year to January 31, says the chairman (Mr H. Wright) in a preliminary report. However, had it not been for the Government stock scheme, the profit would have been up by about 8 per cent more. Dividend As announced, total dividend has been raised from 8 to 9 per cent, and this requires £3500 more at £18,900. The earning rate on average shareholders’ funds is down from 10.1 to 9 per cent while the rate on average capital is up from 10.5 to 11.3 per cent. The latest profit is after providing £25,992 more for depreciation at £30,051 and £3133 more for tax at £20,850. Less Profitable Mr Wright says that like many other financial institutions, the company has found that profits to be made from simple money lending, including the discounting of hirepurchase agreements, are not as attractive as the profits which arise from the majority of trading operations and other commercial ventures. Accordingly, it has gone into land development and subdivision and into the retail motor business. Shareholders’ funds are shown £46,039 higher at £286,742. Capital is £35,000 higher at £245,000.