COMMERCIAL Henderson Pollard is confident of growth

Press, Volume CXII, Issue 32976, 24 July 1972, Page 16

COMMERCIAL Henderson Pollard is confident of growth

(New Zealand Press Association)

AUCKLAND, July 23.

The chairman of Henderson and Pollard, Ltd, Auckland (Mr C. W. Pollard) “confidently repeats,” in the 1972 annual report, his last year’s forecast that the company’s success of the past will be eclipsed by those of the future.

“We have had a good year — better, I believe, than we expected,” says Mr Pollard. “But, largely because of circumstances, political and otherwise, over which we have little or no control, our results do not match last year’s record figures,” he says.

The accounts confirm that the group net profit for the year to April 30 fell by $28,720, or 11.3 per cent, to $225,501. The. latest profit was earned after providing $12,743 less at $222,545 for depreciation and $105,660 less at $87,500 for taxation. Sales at $7,374,000, including $697,000 of export sales, were down by 2.5 per cent on the previous year.

■The directors’ report describes the decrease in net profit as a satisfactory result in view of the continuing rise in wages and other costs.

The cessation of log exports during the latter half of 1971 and difficult domestic trading conditions, with house-building at a low level, also contributed to the reduction in the level of profitability, the report says. However, Mr Pollard says, that trading results during the latter months of the last year showed a marked improvement. “For the future I have no misgivings,” he says. “Recent sales of some of our surplus real estate will vastly improve our liquidity, and a

■- large percentage of the cash t realised could be available :- tax-free to shareholders. i- “A recent independent var luation of one of our large forest holdings shows land :- value at 14 times its book f value. This is an illustration c of the potential value of h many of the company’s asl, sets. ;- Mr Pollard says that the company’s forests had one of their best growing seasons, ;, and that additional forests g were acquired during the t year. There is an adequate i- market for the modernised Auckland sawmilling activity ties, and the new particle t board plant, at Kumeu, will s soon be in production. i- The earning rate on sharea holders’ funds fell from 7.1 per cent to 6.2 per cent, and return on issued capital from 12.4 per cent to 11 per cent. A final dividend of 6 per cent makes a steady total of 9 per cent for the year.