Modest Recovery In A. B. Consol.

Press, Volume CIX, Issue 32031, 4 July 1969, Page 13

Modest Recovery In A. B. Consol.

The group net profit of A. B. Consolidated, Ltd, Christchurch-based biscuit and confectionery group, rose $19,919 —or 7.0 per cent to $303,549 in the year to March 31, the annual report revealed yesterday.

This is a partial recovery from the previous year, when the profit fell by $29,583. The result was after providing $1291 more for depreciation at $242,341, and $6228 more for tax at $271,486. The earning rate on the steady ordinary capital of $3,625,000 rises from 7.2 to 7.8 per cent, and the rate on average shareholders’ funds—sB2,2l6 higher at $5,123,474 recovers from 5.7 to 6.0 per cent.

As already reported, the ordinary dividend has been raised from 5 to 5.5 per cent. It takes $199,375, and is covered 1.4 times by the profit. The $400,000 preference capital takes $22,000.

Stocks rose by $284,679 to $2,512,323. Working capital improved; the current assets/liabilities ratio is 2.5 to 1. The chairman (Mr T. W. Perry) says that in the early months of the year, sales were above the previous year’s level, but not buoyant. Subsequently, record figures were achieved with the total value of output of the group nearly sl3m. In the 1968 year the output value was $11,250,000. However, of the increase some $850,000 represents a change in the valuation of flour, which is now traded on the unsubsidised basis.

This year again the board has decided to defer the con-

struction of the new flour mill at Otahuhu. The present mill is being re-equpped with modern plant suitable for transfer to the new site at a liter date, Mr Perry says.

Profit Doubled By Mt Cook Mount Cook and Southern Lakes Tourist Company, Ltd, Timaru, achieved a notable profit recovery in the year to March 31. Directors say in a preliminary report that net profit was $69,701, This is more than double the 1968 profit of $34,523. The previous best profit was $56,030 in 1967. Divident has been held at 9 per cent for the third year in succession. Smith-Biolab Withdraws The warning to the shareholders of Dental and Medical Supply Company, Ltd, no longer applied, the directors advised the stock exchange yesterday. They revealed that SmithBiolab, Ltd, approached the company on June 26, but I that the notice of intent had, been withdrawn. No offer will now be made by Smith-Biolab. Oil In Snapper Confirmed (N.Z. Pfets Attn.—Copyright) MELBOURNE, July 3. B.H.P. advise that Hematite Petroleum, Pty, Ltd, and Esso Standard Oil (Australia), reported that the Snapper 2 well has been logged and cased to 5376 feet; drilling will resume shortly. The well has confirmed the gas column and the oil show found in the discovery well, and evaluation of the results is proceeding. .