Poor Response To Bell’s Issue

Press, Volume CVII, Issue 31440, 5 August 1967, Page 20

Poor Response To Bell’s Issue

CN«w Zealand Prow anoetaWonf AUCKLAND, August 4. Because of the very poor response to the recent debenture issue, the expansion of Bell Radio-Television Holdings, Ltd., Auckland, will have to be contained within the limits of internal cash flow, the chairman (Mr A. Bell) says in the annual report.

The issue raised $106,400. The company sought $450,000 and was prepared to take over-subscriptions of $150,000.

As in all countries, toe New Zealand television boom was followed by a severe drop in production and profits as demand receded to normal limits, but this was accentuated by the credit restrictions implemented by the Government to restrain the economy, he says. In present conditions, liquidity is a prime consideration, and for that reason directors recommended the 15 per cent dividend, as against last year’s 20 per cent. Retail Field Competition by way of hire-to-buy offers, not only from major hire companies but also from retailers, forced the company to enter the retailing field through Amalgamated Tele Hire (N.Z.), Ltd. The recent acquisition of S.O.S. Radio, Ltd., with three long established branches in Auckland and Hamilton, will strengthen the retail and rental side of the company’s operations as well as enable it to expand the electronic component business in which S.O.S. Radio has specialised. Plastics Loss BeU Plastics, Ltd., faces a difficult year and has to design and tool for new production which is both expen-

sire and time consuming. While this subsidiary operated at a loss in the last year, directors are confident that toe new range would give it a proflatble future. With the exception of Bell Plastics, all companies in the group operated at a profit As announced, the group profit for the year to March 31, feU by $85,392, or 33.6 per cent to $189,038. This was after providing $28,944 less for depreciation at $448,864

and $92,278 less for tax at $169,180. Provisions of $74,410 no longer required, were written back. The 15 per cent dividend required $23,614 less at $70,844. Earning Rates The earning rate on average funds falls from 16.3 per cent to 9.7 per cent, while that on capital from 54.0 to 35.8 per cent. The balance-sheet shows shareholders’ funds up $172,594 at $1,827,110, including unchanged ordinary capital of $472,294.