COMMERCIAL Dillingham reports loss in first year

Press, Volume CXI, Issue 32612, 21 May 1971, Page 17

COMMERCIAL Dillingham reports loss in first year

(Sew Zealart frets Association)

WHANGAREI, May 20. Low profit Dargins on work contracted for during receivership, delays in receiving parts from overseas, and high interest rates resulted in Diiingham Shipyards (Northland), Ltd, incurring a loss of $6BlO during the first year of operation to December 31.

Tn the annual reptrt the chairman (Sir William Stevenson) said that some fixed price contracts, were undertaken at “exremely low margins.” Because of the unprecedented increa-es in costs and wages duri® 1970 which had not beet adequately provided for, those contracts showed losses, he said. ■ Although the compary has a full order book throtgh to mid-1972, “extreme aution and careful managemett will be necessary to enable«s to bring the company into profit,” Sir William Sevenson said. , . . The refrigeration division had returned a smaf profit. The directors reommend that no dividend be taid, but the secretary (Mr ED. Baxter) said that althoigh a loss had been incurred tie results were still “very safSfactory.” An agent had been appointed in Londor to try to eliminate some t the late delivery problem being experienced, and Mr Baxter

said that he believed that the move would prove successful. However, he said, the big problem was still to get continuity of work. In this he believed that the Government must play its part either by some material assistance or direction. It was his hope the Government would show its recognition of the ability by the company to build ships by giving it the chance to tender for naval construction. The balance-sheet showed that the company had stock, and work in progress to the value of nearly $713,000.

D. Henry net up 3.5 p.c. (H.Z. frets Association) AUCKLAND, May 20. D. Henry and Company, Ltd, Auckland sheetmetal products manufacturer and plumbers’ and builders* supplies merchant, increased net profit $2685 or about 3.5 per cent to a record $80,428 in the year to February 28. Last year net profit jumped 94.1 per cent to the previous peak of $77,743. The chairman (Mr R. H. Smythe) announced the result in his preliminary report. The profit was struck after providing $6857 more for depreciation at $39,216 and $9784 more for tax at $86,970, including payroll tax of $5066.

The ordinary dividend had been held at 15 per cent, taking a steady $38,475. Preference requirement was unchanged at $2400. The earning rate on average ordinary shareholders’ funds eased from 9.4 to 8.8 per cent, and that on ordinary capital improved from 29.4 to 30.4 per cent. Shareholders’ funds were $38,478 higher at $949,270, including steady ordinary capital of $256,500, and preference capital of $40,000. The dividend will be paid on July 23, ex July 19.