A.B. Cables Profit Over £160,000

Press, Volume CVII, Issue 31379, 26 May 1967, Page 14

A.B. Cables Profit Over £160,000

(New Zealand Press Association) WELLINGTON, May 25. Associated British Cables, Ltd., Christchurch, expects that its net profit for the year to March 31,1967, will be not less than £160,000.

The chairman of directors (Mr A. T. Young) says this in a report published with the prospectus of an issue of £400,000 in registered mortgage debenture stock to be made by the company.

When a public issue of 400,000 10s shares at 16s 6d each was made by the company last November, Mr Young said that profit for the year to March 31, 1967, was expected to be not less than £150,000.

In his report, dated May 4, 1967, with the debenture issue prospectus, Mr Young says that during the financial year to March 31, 1967, there were occasions, arising from production and political difficulties in several copper producing countries, when the company was physically short of copper to meet its full requirements. Because of these copper problems, profit for the period was below that for the corresponding period of 1965-66, but improved copper supplies were now available and the company’s good forward order book should ensure a satisfactory result and net profit after tax for the year to March 31, 1967 of not less than £160,000. In 1966 the profit was £231,182 and in 1965, £178,826. In 1965 provision of £29,720

was made for a liability for copper price adjustments but, although this amount was debited against revenue in that year, it was not allowed as a deduction for tax purposes till the year to March 31, 1966, when the liability was actually paid. Profits for 1965 and 1966, adjusted for the abnormal effect of this tax, were £193,486, and £216,322 respectively. The present debenture issue is for £400,000, with the right to accept overscriptions up to £450,000.

The issue is being made to assist in financing the company's expansion programme for the period to March 31, 1970, which is estimated to cost £1,575,000. Terms of the debenture issue are: 3 years, 6 per cent; 5 years, 6J per cent; 7 years, 6} per cent; 10 years 7 per cent.

The amount of subscriptions in the year term may be restricted by the directors to £75,000. The issue will open on June 1.