Trans. Nelson net almost steady

Press, Volume CXI, Issue 32797, 23 December 1971, Page 17

Trans. Nelson net almost steady

The net profit of Transport Nelson (Holdings), Ltd, for the six months to September 30, fell $2400 to $127,732, compared with the six months of last year. The new tax rate reduced the provision $13,143, otherwise the profit for the period would have been down 11.9 per cent.

The fall 'in net profit occurred in spite of an increase of $401,161, or 15 per cent, in gross revenue of $3,068,132. Expenses rose $397,122, or 16.5 per cent, to $2,798,252, repair and maintenance costs being 31 per cent higher at $480,182 and wages 21 per cent higher at $822,544. Operating profit before tax was only $3588 higher at $269,880, to which was added a capital profit of $1853. The profit was struck after providing for income tax at the new rate: the provision was $12,727 lower at $118,285. The provision for depreciation was $14,805 lower at $287,453. For the six months the payroll tax took $22,633 of net profits.

The chairman (Mr'J. Newman) says that while the new tax proposals were welcome, the annual reduction of $35,000 is still less than the

anticipated $50,000 cost of payroll tax.

A steady interim dividend Of 5. per cent requiring $94,995 will be paid on February 21. The company will offer new debenture stock at current rates to replace that maturing on March 31, 1972. It will raise a further $300,000 in a debenture issue with interest rates between 71 and 8) per cent. Steps have been taken to improve the liquidity ratio and it now stands at 1 to 1, which is considered normal for the type of business, compared with 0.7 to 1 last year.

Brierley holds 20 p.c. Wgtn Gas <W.Z. Press Association) WELLINGTON, Dec. 22. Brierley Investments, Ltd, has acquired 101,000 ordinary shares in the Wellington Gas Company, Ltd, and with the additional shares proposed to be purchased, it will hold about 20 per cent of the ordinary capital of the company. Preliminary discussions have been held with the directors of Wellington Gas regarding participation In the affairs of the company.