Record Turnover But Fall In Vibrapac Net

Press, Volume CX, Issue 32351, 17 July 1970, Page 18

Record Turnover But Fall In Vibrapac Net

After an 11 per cent increase in sales to a record $2,321,625, the net profit of Vibrapac Blocks, Ltd, (as previously announced) fell by 28.1 per cent to $95,322 in the year to March 31, it is revealed in the annual accounts.

“Unfortunately the in- i creased sales have not been i sufficient to match the spiral- I ling cost of materials, wages 1 and internal charges that have ’ occurred, particularly in the | last six months of the year.” i the chairman (Mr N. M. Vin- ; cent) says in his report. “Greater efficiency from both machinery and labour is • continually under review and • our efforts over the last three ‘ years have enabled us to meet increases in costs.” he said. “However, there niust come a time when to maintain and s

support margins we cannot; absorb all increases in costs, and during recent months a price increase was applied throughout the group. The gain from this price adjustment is not reflected in the accounts under review.” Mr Vincent says. This was after providing $5294 for depreciation at $125,109 and $28,423 more for tax at $90,664. Earning Rates The earning rate on the steady $605,068 capital declines from 21,9 per cent to 15.8 per cent. The rate on average shareholders’ funds falls from 11.6 per cent to 8.4 per cent. Dividend is held at 12 per cent and requires $72,609 It is covered 1.3 times. After transferring $30,000 to reserves, carry-forward is: Cormorant No. 1 Esso and B.H.P.’s Connor-! ant No. 1 exploration well was plugged and abandoned, at a depth of 9845 feet on July 14. Hydrocarbon shows in the well are not ’ considered to be significant Merchant Bank Tfie directors of Capital and Deployment, Ltd, Syd-ney-based merchant bank, have announced the allotment of 2,000,000 fully paid 50c shares. The group’s Intertrade Corporation (Australia), Ltd, has established branch offices in Los Angeles, Djkarta and Kuala Lumpur and representative offices in Tokyo, Hong Kong, Singapore, Taipeh and Auckland. Another group member company, Capdep Exploration Pty, Ltd, a mineral exploration subsidiary, is thoroughly investigating several propositions.

reduced from $139,292 to : $132,336. i The chairman says that re.suits from subsidiaries continue to be most encouraging. All have shown advances in turnover and the increase in demand for ready-mixed concrete in Timaru has been particularly strong. High depreciation on the new plant installed in Invercargill last year has been a factor in the group’s fall in trading profit. With depreciation in the Invercargill subsidiary more than $15,000 higher than last year, this subsidiary incurred a loss. Working capital declined by $81,894 to $343,217 with current liabilities of $564,186 and current assets of $907,403. The liquidity ratio fell from 2.2:1 to 1.6:1. Current Ratios j Among current items, overi drafts rose from $99,155 to ! $181,052 and stocks by $32,402 [to $413,952. Sundry debtors and works iin progress are up from ; $398,829 to $469,515. Fixed assets rose by $165,424 to $1,286,954. | Shareholders’ funds improved by $23,044 to $1,147,079 of which capital accounts for $605,068. Term liabilities rose by $56,088 to $435,986 and there I is in addition. $84,325 in convertible notes. Mid-East Mins. Mid-East Minerals NL’s drilling has indicated reserves of between 10 to 15 million tons of nickeliferous material at the Pykes Hill claims in Western Australia. Insufficient close pattern drilling has been carried out to make an accurate assessment. Mid-East holds the claims in a joint venture with Westralian Sands, Ltd.