Earnings Drop

Press, Volume CIX, Issue 32012, 12 June 1969, Page 16

Earnings Drop

Reduced advertising revenue and factors affecting its computer subsidiary lowered the net profit of Truth (N.Z.), Ltd, by 11.2 per cent to $146,964 for the year to March 31. Dividends are being maintained, however.

The chairman (Mr J. H. Dunn) said the $15,523 fall in group revenue, less trading expenses, to $435,742, was largely accounted for by factors affecting Electronic Data Systems, Ltd. These were the necessity of writing off spare parts and stores when the link with English Electric Company, Ltd, was severed, initial losses incurred in the setting up of the Auckland Bureau, and writing off $98,805 for the subsidiary’s depreciation, compared with $32,978 the year before. Mr Dunn said a change in the revenue laws had enabled the whole of the subsidiary’s losses to be written off against the current revenue of the parent company. Steady Pay-out

A final dividend of 61 per cent is recommended making a steady 10J per cent for the year. A final 3) per cent will be paid on the participating preference shares, making 6 per cent for the year. The profit result was struck after providing $67,041 more for depreciation at $169,561 and $55,617 less for taxation at $73,350. Unappropriated profits carried forward have increased by $76,050 to $373,437. The consolidated balance sheet shows shareholders’ funds up slightly at $1,295,186