Motor Bodies' profit rises 71 per cent

Press, Volume CXI, Issue 32633, 15 June 1971, Page 17

Motor Bodies ' profit rises 71 per cent

(New Zealand Press Association)

WELLINGTON, June 14.

The group net profit of New Zealand Motor Bodies, Ltd, for the year to March 31 increased $36,180, or 71 per cent, to $87,284, the directors said in the annual report.

Sales were a record $2,789,677 compared with $2,114,176 last year. Gross profit increased from $567,600 in 1970 to $830,715 after increased output.

The percentage of profit on sales increased from 26.8 to 29.8. In his report the chairman (Mr G. D. Stewart) said that the company held its share of the market in bus and coach manufacture. It increased its range of light commercial work, and concentrated the activities of the assembly company on a reduced variety of models to obtain improved results through longer production runs. The company now

assembles Bedford and Landrover products exclusively, and the output of these vehicles has nearly doubled in recent months. The assembly of Datsun cars has been discontinued.

As already announced, the total dividend for the year is 7 per cent, compared with 6 per cent in the previous year. This requires $70,000 and is covered 1.2 times.

The profit was struck after providing $11,005 more at $46,981 for depreciation, and $57,825 more at $103,000 for tax. Payroll tax took $17,178.

The group’s balance-sheet shows shareholders’ funds $26,390 higher at $1,479,716. Working capital declined

$76,131 to $262,006, and the ratio fell from 2.2 to 1.7 to 1. Fixed assets increased $66,410 to $1,613,082, while investments remained at $5OO.

Austim issue expansion

(N.Z. Press Assn.—Copyright) SYDNEY, June 11. The Australian Industrial and Mining Corporation, Ltd (Austim), plans to issue 1.7 m new shares which will increase capital and reserves by more than sl.Bm after acceptance of offers by Austim to acquire outstanding minority shareholdings in four companies. The chairman (Mr M. I. McAllister) told the annual meeting that Slater Walker Securities, Ltd, through Thomas Brown and Sons, Ltd, had also agreed to under write an issue at par of about the 4.6 m stock units. “So that all stockholders will have an opportunity to participate this capital issue, the directors propose to offer 1 new share at par for every 6 stock units held. This rights offer will extend to those stock units which it is proposed to issue to acquire the minority shareholdings in Genevieve Holdings, Ltd, Don Industries, Ltd, Mutual Underwriting and Development, Ltd, and Halifax Holdings (Australia), Ltd, he said.

Contract for Neeco

National Electrical and Engineering Company, Ltd, a member of the Cable Price Downer group, has won a $150,000 contract for the supply of 8.1.C.C. supertension cables to the new oil-fired power station at New Plymouth.