Bonds Earnings Rise Slightly

Press, Volume CVIII, Issue 31653, 13 April 1968, Page 16

Bonds Earnings Rise Slightly

Bonds Hosiery Mills (N.Z.), Ltd, Wellington, increased its profit by $4651, or 2 per cent, to $242,929 in the year to January 19.

The dividend has been maintained at 15 per cent and requires $2499 more at $162,315. This is covered 1.5 times by profit. The earning rate on average shareholders’ funds is up from 11.3 to 12.1 per cent and the rate on average capital is steady at 22.4 per cent. It is difficult to indicate the course of events for 1968, says the chairman (Mr A. S. Paterson). Viewed in retrospect, 1967 was by no means an easy year. At the outset reduced consumer spending had been expected to have some effect on business. As a result of selling efforts most sections of the group achieved increased turnover. In the case of hosiery, it was necessary to accept lower selling prices and lower profit margins, he says. The full impact of devalu-

ation has yet to be felt but it seems inevitable that for some of the products price increases will be necessary. The latest profit is after providing $19,376 more for depreciation at $182,720 and $42,486 more for tax at $236,986. Shareholders’ funds are $301,564 lower at $1,847,720. This has occurred because of the rationalisation of five sections into one and the writing down of interests held in subsidiaries.

Perch A-l Not Encouraging (N.Z. Press Assn.—Copyright) MELBOURNE, April 11. The Esso-BHP oil search partnership reported today that a very limited thickness of oil saturation which was apparently uneconomic was indicated by technical tests of data from the Perch A-l well, off the Victorian coast Esso-BHP said the Glomar 111 rig was drilling ahead on the well at 7645 ft. On March 25 the partnership announced it had cut a core at 3768 ft with very limited recovery. The core contained a slight show of oil.