“Gratifying Year" For A.G. Securities

Press, Volume CIX, Issue 31975, 30 April 1969, Page 17

“Gratifying Year" For A.G. Securities

(New Zealand Press Association!

AUCKLAND. April 29.

The N.Z. Finance Houses' Association is preparing a submission to appeal to the Government against the moneylending restrictions imposed by the Capital Issues (Finance (Companies) Regulations, says the chairman of the Auckland finance company, Associated Group Securities. Ltd (Mr H. J. Wright).

In his review with the company’s annual accounts, Mr Wright says it is important to realise that the restrictions which seek to peg money-lending to 1967 levels are in fact restricting operations to a far greater degree because of the continuing reduction in the purchasing power of money and higher costs after devaluation.

This effectively means that the company is unable to provide the same proportion of loan moneys as it was able to in 1967. he says. Reviewing the group's activities in the year to January 31, Mr Wright says the year ended strongly with a gratifying increase in the landdeveloping sector, while funds invested in the money-lend-ing and leasing sector reached a very satisfactory level in relation to the pegged ceiling

’. imposed by the Government. The company's subsidiary.\ Autorama (1962), Ltd. had a disappointing year although profit was on a par with that ■ earned in the previous year,;' he says. “The main reason for this has been the extreme short-! age of suitable stocks of used i vehicles.” During the year Autorama I bought the rental-vehicle | licences previously held by{ ; Roy. Wyatt. Ltd. Results in:

this field have proved satisfactory, he says. As announced, the accounts show a 13.7 per cent higher profit of $63,179 after taxation of $59,128 and depreciation of $3577. In the previous year the company earned a net profit of $55,546 registering an improvement of 117.2 per cent. The full accounts also inielude notice that the group intends to change its balance date from January 31 to July 31. { Also included is a prospectus for the issue of $400,000 in debenture stock and un{secured notes.