Morrison-P.I.M. sees better demand

Press, Volume CXII, Issue 33003, 24 August 1972, Page 18

Morrison-P.I.M. sees better demand

(New Zealand Press Association) AUCKLAND, August 23, The group turnover of Morrison-P.I.M. (Holdings), Ltd, for the first three months is below budget, but is appreciably ahead of the first three months of the same period last year.

This is stated in the company’s annual report by the chairman (Sir Peter Phipps) in the course of reviewing a year of "severe inflationary pressures,” in which the company’s profit had its first substantial set-back since 1961, and dividend reverted from 12J per cent to the previous 10 per cent. Sir Peter Phipps says that to assist in recovering the

former growth in earnings, the directors have invited the company’s associate and technical adviser, Collie (Australia), Ltd, to review its administration and operations. The chairman says, however, that the company is well placed to take advantage of an expected growth in demand, which should be encouraged by features of the Budget. The Auckland-based company, which manufactures printing and supplies machinery and equipment to the printing and allied trades, did not quite achieve the record group sales of the previous year, but only two subsidiaries failed to reach these levels. Sir Peter Phipps says the last year was markedly less buoyant for the graphic arts industry and total turnover was marginally down. However, in manufacturing, the company’s major activity, increased expenses and lower consumer demand resulted in a reduction in the rate of gross profit. Slightly higher gross markins in some merchandising activities could not prevent the over-all reduction in [gross profit. The new Petone factory has already made a very worth- ! while contribution to the company’s output, the chairman says. The full accounts show that the group net profit of $115,339 (last year ($187,662) was reached after tax of $99,872 ($192,439) and depreciation of $66,815 ($53,256). Earnings on shareholders’ funds have fallen from 13.0 per cent last year to 7.8 per cent, and on capital from 25.7 per cent to 15.8 per cent. The dividend is covered 1.6 times—compared with 2.1 times last year and 3.1 times in 1970.

However, the asset backing a share has increased from 198 c to 204 c.