COMMERCIAL I.C.I.(N.Z.)'s profit rises 15.7 per cent

Press, Volume CX, Issue 32474, 8 December 1970, Page 24

COMMERCIAL I.C.I.(N.Z.)'s profit rises 15.7 per cent

The audited group net profit of Imperial Chemical Industries (N.Z.), Ltd, rose 15.7 per cent to $2,203,415 in the year to September 30, the directors announced in a preliminary report yesterday.

The result was struck after providing $113,553 more for depreciation at $854,820, and $396,841 more for tax at $2,493,642; the interest attributable to minority shareholders was $193,869, compared with $205,602 last year.

The directors will recommend an unchanged dividend of 10 per cent; it will be paid on February 18, ex dividend January 4.

The earning rate on the capital which increased slightly from $10,413,794 to $10,544,128 —improved from 18.3 to 20.9 per cent. Sales increased from $37,146,136 to $41,724,198 a rise of 12.3 per cent. New Zealand Wallpaper Manufacturers, Ltd, became a wholly-owned subsidiary in

March, and the foregoing result includes the profit of that company for the whole year, the directors said.

"Active trading conditions were experienced throughout the year, and external sales were higher than those of the previous year. In spite of I comprehensive internal control measures, operating costs rose substantially during the year. “The effect of the high cost levels reached at the end of the year is not fully reflected in the year’s profit result," the directors said.