BRIDGEVALE HOPES FOR GOOD YEAR

Press, Volume CVIII, Issue 31754, 10 August 1968, Page 18

BRIDGEVALE HOPES FOR GOOD YEAR

The outlook for the year is that it will be most difficult, but directors hope that the company will show a reasonable profit, says the chairman of Bridgevale Consolidated, Ltd, the Wesport-based transport and coalmining group (Mr T. M. Scanlon) in the annual report.

The medium-term prospects for the group are good, he says.

8 per cent on an annual basis.

The profit for the 14 months to March 31 was $18,639 against $26,836 for the 12-month period the year before. On an annual basis this represents a profit fall of about 40.4 per cent. The turnover, however, was $1,043,908, or an increase of

The interim dividend of 4 per cent was paid on capital before the reconstruction carried out during the trading period while the final 2} per cent was paid on capital after the reconstruction, to make the return about 8 per cent on the old capital. This requires $10,789 and is covered 1.7 times by the latest profit. During the year shareholders in Bridgevale Holdings exchanged two of their shares for three shares in Bridgevale Consolidated, which was previously a subsidiary of Bridgevale Holdings under the name of Hydraulic Mining. Profit Satisfactory

While in the circumstances the final profit earned for this period is reasonably satisfactory, it is disappointing in view of the substantial amounts of fresh capital investment made in the business in the last two years and also the strenuous efforts on behalf of the group made by management and staff, says Mr Scanlon. Difficult trading conditions were encountered for the latter part of the period. Both the motor and the mining divisions earned reasonable profits. The transport division showed a pleasing increase in turnover but the final result was not satisfactory. The latest profit was after providing $9227 less for tax at $3497 and $22,943 more for depreciations at $68,591. Shareholders’ funds are $13,697 higher at $250,593 with capital reserves down $69,664 to $10,320 through the reorganisation. Ordinary capital is $76,050 higher at $210,200.