Associated Cables Seeks £400,000

Press, Volume CVI, Issue 31362, 6 May 1967, Page 18

Associated Cables Seeks £400,000

Associated British Cables, Ltd., Christchurch, will proceed soon with a public issue of £400,000 of registered debenture stock.

The rise recovered most of the decline of 1964 and 1965. The increase reflected a further improvement in sales, up 6.7 per cent to $82.2 million. Profit for the latest year is $2,480,583 compared with $1,794,136 earned in the previous year. Earning Rate The latest profit represents an earning rate of 6.4 per cent on average shareholders’ funds and 3 per cent on sales but directors say they do not consider the return adequate. It is only about half the estimated average for all companies operating in similar fields in Australia. The dividend paid to the

Anglo-Dutch parent company, Unilever, is unchanged at $500,000. In a report to employees, the chairman (Mr G. W. Barraclough) said that the group experienced strong competition in every market in which its products were sold. The cost of wages and materials continued to rise, although this was partly offset by lower tallow prices. All companies contributed to the rise in sales but in two fields—ice-cream and toilet preparation profits were lower.

During the year, the group spent more than s4m on development and plant expansion.

Export sales last year totalled s2m.