COMMERCIAL Wilson, profit rose 17.9 per cent

Press, Volume CXII, Issue 32965, 11 July 1972, Page 19

COMMERCIAL Wilson, profit rose 17.9 per cent

Neu> Zealand Press Association)

DUNEDIN, July 10.

The net profit of Wilson, Neill, Ltd, in the last 12 months was $226,332, an increase of 17.9 per cent on the previous year’s profit, the chairman (Mr J. A. Valentine) said in his annual report.

Mr Valentine described/ profits as “satisfactory.” i The rapid increase in the 1 price level evident during 1971 slowed down during i 1972, easing the demand for ‘ additional funds to finance, existing trading operations, h Group turnover totalled $lO.l million, an increase of j $1.6 million, or 18.8 per cent,}] above the 1971 figure. Commission sales in theji company’s export division ■ : were also higher — 60 peril cent above the 1971 figure, i The trading profit ofli $349,854 was 20 per cent; higher than the comparative figure of $290,962 for 1971. '! Taxation absorbed $112,359 ji and minority interests!; $11,162. The net profit represents? an earning rate of 26.8 per; cent on the paid up capital of $844,140. which was in- 1, _ I

creased during the year byi< $140,690 because of the one! for five bonus issue. !$ The previous year’s earn- ' ing rate on issued capital of 1 §703.450 was 27.3 per cent. I The net profit represents a i return of 15.5 per cent on 1 shareholders’ funds, com- • pared with 14.5 per cent the [previous year. Reference to a comparative summary of five years’ re- ! suits shows that earnings on ! funds employed had been maintained and showed an ! increasing trend, Mr Valenitine said. ‘ “Although all operations; have improved, the increase} in the return of funds em-| ployed has been mainly be-} cause of the success of export division operations.” Not all the company’s export turnover could be [claimed under the taxation I incentive allowances for increased export sales, and be- : cause of this fact and because the calculation was [based on increased sales, [taxation deductions under this heading had been decreasing. However, the increase in the allowance from 15 per ■cent to 20 per cent included jin this year’s budget would be of benefit to the company. The company’s board 1 recommends a dividend of 11 : per cent for the year, four per cent of which is to be! paid from capital reserves! exempt from tax in share-1 holders’ funds, and 7 per cent! from profits. i The previous year’s divi-l ciend was 10 per cent, and! the increase was permitted! under the Limitation of Dividends Regulations. 1972. be-1 • cause last year’s bonus divi-l

dend was permitted. < Profit retained was ' $133,477, and the dividend I was covered 2.4 times; in the ■, last three years, profits re- < tained have totalled §340,554 , representing 22.3 per cent of . the total shareholders’ funds at balance date. (