STREET EARNS LESS ON FUNDS

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

STREET EARNS LESS ON FUNDS

Although Street Construction, Ltd., Hamilton, lifted net profit by 6 per cent in the latest year to February 28, the earning rate on average shareholders’ funds is down from 16.1 per cent to 14.2 per cent

The rate on average capita] falls from 29.2 to 23.2 per cent

Earnings rose $2552 to $45,288, after increasing the provision for tax by $2586 to $43,352 but voting $1571 less for depreciation at $17,037. The dividend has been held at the 10 per cent rate as forecast at the time of toe one for three bonus issue announcement in October and is payable on the higher capital. This rate is equivalent to 13 2-3 per cent on the old capital. The total requirement is up $4917 to $19,557. Shareholders* Funds Shareholders’ funds are $332,074, an increase of $28,952, and include capital, all ordinary, up $49,167 to $195,567.

Capital reserves are down from $51,228 to $5282 reflecting the bonus issue. Business Steady The chairman (Mr C. A. Staples) says in his review that in spite of the general lowering of prices and very fine margins brought about by economic conditions, the company has been successful in maintaining a volume of business comparable with last year.

It is also increasing the proportion of turn-over arising from negotiated contracts.