COMMERCIAL Marac Better But Future Uncertain

Press, Volume CIX, Issue 32142, 11 November 1969, Page 25

COMMERCIAL Marac Better But Future Uncertain

Manufacturers and Retailers Acceptance Company, Ltd, lifted its half-yearly profit by 123 per cent when it earned $138365 in the six months to September 30, a period still affected by the former Capital Issues Regulations.

The chairman (Mr J. C. Fletcher) said in his report that the future was less predictable because of the loss that would be involved in compulsory holding of Government stock and some uncertainties in the economy.

But in spite of the “onerous requirements to invest heavily in Government stock” in the Fletcher said finance compinies would be »ble to do more effective [medium and lobg-Um3plan-ding. He was result of the latest half-yeßr, which had been largely influenced by the old regulations, and the company faces the rest of the year “with every confidence.” The merger with Pacific Factors, Ltd, prevents a direct comparison with the six months to September 30,1908, and the 12.3 per cent increase Is calculated on the result for the year to March 31. Funds Up 9 p.c. Shareholders funds, at 81,548,351, were 8138,365 higher than at March 31, and total assets (net of unearned income) rose $506,528, to $10,535,766 in the same period. Borrowings were up by ♦594,214 to $7,567,805. The report said the earning rate on funds had been 'well maintained. The rate on capital, calculated on an annual basis was 22.1 per cent, compared with 17.9 per cent in the previous year. There was little change in the Auckland-based finance company’s resource distribution. Leasing continued to absorb almost half of the funds, with factoring next at 25 per! cent, consumer loans at 17 per cent, and other industrial' and commercial at 12 per* cent. Gross receivables totalled' sll.Bm, a rise of almost: $700,000. •

The. flow of funds from debenture and note issues , had continued steadily and most satisfactorily, reflecting the liquidity of the economy, the report said. An international officer with banking and trade promotion experience had been appointed to develop the company's growing international financing activities. He would be concerned particularly with assisting exporters.