Consolidated Brick profit revised

Press, Volume CXII, Issue 32998, 18 August 1972, Page 15

Consolidated Brick profit revised

(New Zealand Prese Association?

WELLINGTON, August 17. The directors of Consolidated Brick and Pipe Investments, Ltd, have announced another unaudited group net profit for the year to March 31. The latest preliminary result is $60,000 lower than the profit of $450,000 reported in May.

A net profit of about $390,000 represents a fall of about $205,300, or 34 per cent, compared with the result for the previous financial year. In the May report the directors said that nonrecurring gains of $130,000 were included in the profit. The latest report does not say what proportion of the profit is from trading. Adjustments which have taken place in completing final accounts will be released on completion of the audit, which is well advanced, the directors say. The trading results for the first three months of the current year show an improvement over the equivalent period last year and after major capital expansion during the last few years the group is now concentrating on consolidating its position and improving liquidity, the directors say. They say that they have given careful consideration to the payment of a dividend and, after taking into account

the reduced profits for the year and the effect upon liquidity have decided to recommend an ordinary dividend of 5c a share. The company paid 10c a share last year. Subject to confirmation by the Inland Revenue Department, it is proposed to pay the ordinary dividend out of realised capital profits so as to be free of tax in the hands of shareholders.

The company has ample revenue reserves, but it is considered to be in the best interest of shareholders to pay the dividend from capital reserves to compensate in part for the reduced rate of dividend by tax savings in the hands of shareholders, the directors say. The ordinary dividend and a final 3 per cent preference dividend will be payable in November. The dates of the closing of the registers will be announced later.

The total dividend requirement is $269,835 of which $8221 interim preference dividend was paid in January.