C.P.D. plans cash issue after 36 p.c. profit rise

Press, Volume CXI, Issue 32636, 18 June 1971, Page 6

C.P.D. plans cash issue after 36 p.c. profit rise

(New Zealand Press Association)

WELLINGTON, June 17.

The unaudited group net profit of Cable, Price, Downer, Ltd, increased $370,000, or about 36 per cent, in the year to March 31, the directors said in a preliminary report.

The company plans to issue 1.506,420 ordinary shares of 100 c each, at par, to ordinary shareholders in the ratio of one share for every five ordinary shares held on June 30. The purpose of this issue is to provide further working capital to finance the continuing growth of the group’s business, and the directors say that they are confident that the additional funds will be profitably employed. The new shares are payable

50c on application, and the balance on November 30.

Interest will be paid on call moneys paid in advance at the rate of 6 per cent per annum.

Application moneys will rank for dividend from August 1, and call moneys from December 1.

The year’s profit represents an earning rate of 18 per cent on ordinary capital, compared with 13 per cent last year, and 9 per cent on ordinary shareholders’ funds compared with 7 per cent last year. It was achieved after providing $72,000 more for ordinary, and special depreciation at $1,343,000, and after transferring a further sum of $236,000 to the provision for unearned profit on hire purchase transactions. This provision now stands at $782,000. The turnover of the group exceeded $73.5m, and this is $14.1m or almost 25 per cent higher than the $59.1m turnover of the previous year. The directors recommend

a final ordinary dividend of 5 per cent, making a steady 10 per cent for the year, and on the “A” cumulative preference shares, in terms of their participating right, a 2 per cent dividend is recommended making 9 per cent for the year.