Consolidated Brick Shows 13 p.c. Profit Rise

Press, Issue 32345, 10 July 1970, Page 18

Consolidated Brick Shows 13 p.c. Profit Rise

The group net profit of Consolidated Brick and Pipe Investments, Ltd, Auckland, rose by 12.7 per cent to $517,625 in the year to March 31, the directors reported in a preliminary statement yesterday.

The profit is a record for the company, and the ninth successive annual increase. I The directors propose to raise the annual dividend I from 9 to 10 per cent. If approved, this dividend will I be paid on August 21; ex dividend August 5. The directors say that the earning rates are 17.5 per I cent on increased average ordinary capital, and 3 4 per cent on average ordinary shareholders’ funds. The new crockery plant, being partly financed from the proceeds of the increased capital, is still under conIstruction and did not contribute to the profits for the year. Last year the directors announced that they intended

to raise further capital by an issue of unsecured convertible notes, after conversion of the 1970 notes which matured on April 30. The additional funds, together with those raised by the 1969 issue, were to finance the new crockery plant. The directors now an jnounce that an issue of unsecured convertible notes of ' 100 c each will be offered to I shareholders, both ordinary and preference, at par in the ratio of one note for every

three shares held, with rights of renunciation. The notes will carry interest at 6j per cent per annum and will be repaid on maturity in 1975 by the issue of two ordinary shares for every three notes held. The issue will open on August 24 and entitlements will be mailed to shareholders, with a prospectus, shortly before that date. The amount of the issue will be about $1,300,000. The share registers will be closed from August 5 to August 24, both days inclusive, for the purpose of establishing entitlements to the note issue, and the calculation of dividends.