Sharp Fall In Profit By. Bridgevale

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

Sharp Fall In Profit By. Bridgevale

After a fall in the net profit of Bridgevale Consolidated, Ltd, from $18,639 to $Bl9l in the year to March 31, the directors recommend that the dividend be passed, according to the annual report.

Transport division costs contributed to the disappointing year.

The forecast last year that 1968-69 would be a most difficqlt year has “unfortunately been proved to be correct,” notes the chairman (Mr T. M. Scanlon). The group’s two subsidiary transport companies both traded unprofitably, dragging down the satisfactory motor division profit and a profit in the mining division. Substantial and unusual extra operating expenses were incurred as a result of the desing of roads, their restoration and subsequent quality, in the Inangahua earthquake. Another problem was the cessation of supply of screened coal to the Railways Department with the change to diesel locomotives. The directors would consider that the payment of a dividend would weaken the ability of the group “to face the problems of the future.” Full advantage has been taken of the West Coast Investment Allowance for taxation purposes, taxation being $1932 ($3497 last year). Depreciation is lower at $55,591 ($68,591). Shareholders’ funds are higher at $255,375 ($250,593). During the year the group's take-over offer for the Buller Development Company, Ltd, was accepted. Several merger approaches were declined but a Reefton general transport business was purchased. Total current liabilities are $190,613 ($242,268) and total fixed assets $400,444 ($422,802). Total fixed liabilities are $200,653 ($200,018).

Current assets are $164,377 ($212286). Although there are indications that 1969-70 “will be a more satisfactory year” problems continue in the transport division, directors note and “in the light of continuing economic conditions, shareholders are advised that they cannot expect a spectacular recovery in a short space of time.”