E. Lichtenstein Has Small Profit Rise

Press, Volume CIX, Issue 32118, 14 October 1969, Page 29

E. Lichtenstein Has Small Profit Rise

(New Zealand Press Association) AUCKLAND, October 13. The group net profit of E. Lichtenstein and Company, Ltd, Auckland woolbuying broker and scourer, rose $1212, or 1.2 per cent, to $103,322 in the year to June 30, despite a loss on the establishment of a new marketing company.

The parent company’s profit increased from $101,5481 (including $448 dividends) to!

$108,395 (including $175 dividends).

As announced, the dividend is steady at 18 per cent. The marketing company was established to deal with the distribution of the products of the local manufacturing operation. The company acquired a controlling interest in this venture last year, but has not yet disclosed its name or even its nature. The earning rate on average shareholders’ funds eased from 14.6 to 13.7 per cent while that on capital edged

■ up from 33.0 to 33.4 per cent ILThe dividend again takes i $55,620.

Shareholders’ funds are $52,952 higher at $779,655, in-

cluding capital of $309,000. Minority interests are $2129 up at $17,649, while term liabilities, $16,000 last year, have disappeared. Fixed assets are $43,578 lower at $541,498 and investments $1254 higher at $18,745. Working capital improved $81,395 to $184,760. Trading conditions have not been easy, the chairman (Mr E. Lichtenstein) says in the annual report. The ever-increasing costs in a commodity operation are extremely difficult to recover in order to remain in a competitive position, he says. This is in contrast to “cost plus” industries operating in the domestic market The latest result was struck after providing $2769 less for depreciation at $42,363 and $5379 less for tax at $91,000, and deducting minority interests $223 up at $612.