COMMERCIAL Spiers sees benefits in housing trend

Press, Volume CXII, Issue 32966, 12 July 1972, Page 22

COMMERCIAL Spiers sees benefits in housing trend

(Sew Zealand Press Association) WELLINGTON, July 11. Stimulation of the housing industry by the Government, through increased housing loan limits, will lead to a growing demand for the products of MSD Spiers, Ltd, the chairman (Dr O. F. Haylock) says in the company’s annual report.

Together with a return of] confidence in the farming in-! dustry this should result in; buoyant trading conditions! and, provided costs can be controlled, the directors expect a satisfactory result in the coming year. Sales at $5,829,849, exceeded the previous year’s figure by $1,090,761, or 23 per cent. Although part of this growth resulted from inclusion of six months trading by Craigwin Developments, Ltd, the continued growth in turnover is a reflection of the high standing of the company in the southern half of the North Island, the chairman says. A shortage of loan finance i for housing, throughout the j year to March 31, resulted in ' a very competitive market for ’ builders’ supplies. i

j During the early part of . the year sales of farmers [materials were slow but a return of confidence in that ’ industry was reflected in re- : cord sales during the closing month. Dr Haylock said. Craigwin Developments, I Ltd, Wellington. Manawatu [and Hawke’s Bay housebuilder, which became 89 per cent owned by M.S.D. during the year, completed 100 houses in the period. At Totara Park. Upper Hutt. which M.S.D. is developing, houses are being built at the rate of almost one a week. The group accounts show that net profit for the year to March 31 was $194,966 (slightly more than in the preliminary report), compared with $171,702 for the pre-, vious year. This represents an increase of 13.5 per cent.

f The provision for deprecias tion, was $7624 lower at a $85,412. Payroll tax was t $8277 higher at $20,430 and - income tax w'as $13,699 lower ’ at $146,070. The dividend rate raised , from 10 per cent to 12 per I cent, required $36,349 more at - $109,047. The dividend was recovered 1.8 times by the net >! profit compared with 2.4 )! times the previous year I Shareholders’ funds were r $285,117 higher at $2,232,540 capital $145,396 - higher at $872,375. The earning rate on average share holders funds rose jfrom 8.8 per cent to 9.3 per > I cent and that on average ij capita! rose from 23.6 per J cent to 24.4 per cent. II Working capital was j $704,947 higher at sl.Bm and I the ratio rose from 1.7 to 2.6 to 1.