U.E.B. Bonus; Takes Over Bremworth

Press, Volume CVII, Issue 31385, 2 June 1967, Page 13

U.E.B. Bonus; Takes Over Bremworth

(New Zealand Press' Association) AUCKLAND, June 1. U.E.B. Industries, Ltd., will make a one for five bonus issue and raise nearly £1 million in a convertible note issue. The company has now completed its fnove into the textile field by taking over, for cash, Bremner and Bremner, Ltd., the parent company of Bremworth Carpets, Auckland, the directors announce.

The dividend for the last year has been held at 11 per cent, but half of this will be taxfree.

Directors also announce that the audited group net profit for the year to March 31 was £821,514, an increase of £279,953, or 51.7 per cent, over the previous year. j

Sales and profits to date are in excess of those for the same period last year, directors add. The latest result was after depreciation of £473,000, tax of £621,000 and deduction of minority interests of £17,000. It represents an earning rate on much higher ordinary capital, including the £338,000 issued after the balance date in the conversion of 1967 notes, of 21.6 per cent, against 22.5 per cent last year. Bonus Issue The U.E.B. directors confidently anticipate that, short of a complete national recession the current rate of dividend will be maintained after the bonus issue. Bremworth carpets was begun at Papatoetoe in 1960 by Mr W. M. D. Bremner, who had been an importer of carpets. Mr Bremner will continue as managing-director. Bremworth is one of the two largest carpet makers in the country. It makes high-quality tufted carpets and wilton woven carpets.

The bonus issue will be made on holdings as at July 21, the new shares to rank pari passu. It will be made from share premium reserve and will be free of tax. The holders of the 1968 convertible notes will receive their bonus shares on April 1 next. The convertible issue, which will raise £999,668, will also be made on holdings as at July 21, in the ratio of one for four. They will have to be paid for in full before September 14. Interest will be 61 per cent, payable annually on September 14. The last payment will be made in 1971. Thereafter the notes will convert to ordinary shares, ranking with the existing shares and qualifying for the 1972 dividend. Similar Terms The directors say that the 1972 notes will be issued on similar terms as the 1968 notes as regards new issues. The purpose of the issue is to finance the rapidly increasing volume of business. Shareholders will be asked to approve an increase in nominal ordinary capital from £4 million to £6 million. In addition, there is £1 million nominal preference capital, of which £600,000 has been issued.

Balance Date Of the ordinary capital! £3,285,672 was issued at March! 31, with an extra £338,0001 issued after the balance date! in conversion of the 1967: notes. The 1968 notes will absorb ' £375,000 and the bonus issue £799,735. Conversion of the 1972 notes, taking £999,668, would ] bring issued ordinary capital < to £5,798,075. , The dividend takes £394,754, 1 and is payable on July 21; ex dividend July 7. i