Rothmans seeks new profitable ventures

Press, Volume CXII, Issue 33032, 27 September 1972, Page 18

Rothmans seeks new profitable ventures

IN'ew Zealand Press Association)

AUCKLAND, September 26.

New undertakings in which Rothmans Industries, Ltd, can employ its supervisory, financial, manufacturing, selling, or promotional skills, offer the most worth-while opportunities, the directors believe. The chairman (Mr K. D. Rutland) says this in the first annual report since the major reorganisation of the group in New Zealand.

Early this year Rothmans Industries joined the stock exchange lists after taking over Rothmans (N.Z.), Ltd. and the previously listed Rothmans Tobacco Company, Ltd. As a result of the reorganisation the interests of the public company were extended into real estate, wine, brewing, and merchant banking. In August the directors reported a rise of 14.1 per cent to $1,849,543 in net profit for the year to June 30 — a

result confirmed by the accounts.

Mr Butland says in the report that tobacco still provides the major part of the group’s income, but the group had a successful year. Export sales were maintained in spite of a serious interruption in shipping to one of the main markets. The funds required to finance leaf-tobacco stocks continued to rise in relation to the growth of business because of the increasing prices for leaf from all sources.

The value of leaf stocks at the last balance date was more than slm higher at more than $7.5m. Peros, Ltd, umbrella maker, achieved record unit sales and turnover. Trading profit was maintained, Mr Butland says.

Cook Holdings (New Zeai land), Ltd, property develi oper, in which Rothmans has a 75 per cent interest, showed an improved profit. All its properties are well and securely let and produce a satisfactory return on cost, says Mr Butland. The group’s half-interest in the development of the Matarangi Peninsula is of a more long-term nature, Mr Butland says. An aerial survey of the peninsula was completed during the year and preliminary planning of a beach resort has started. Application has been made for a mineral-prospecting warrant over more than 4100 acres including the Matarangi property, the Whangapoua Harbour, and part of the ocean bed. New Zealand. Napier, and

Wellington Freighters, Ltd, traded profitably and increased its contributions to the group’s result. The group’s minority interest in Securitibank, Ltd, merchant banker, provided a good return on the capital invested and offered a useful avenue for investment of the group’s short-term investment funds. A. A. Corban and Sons, Ltd, vintner, in which an interest was acquired last December, did not contribute to the profit during the year, Mr Butland says. The profit was struck after providing $691,063 for depreciation and $1,620,246 for income tax. The payroll tax was $59,233. As announced, the dividend rate for the latest year was 15 per cent, up from the 12J per cent received by Rothmans Tobacco shareholders before the reorganisation. The directors expect to maintain the 15 per cent rate.

The earning rate on bal-ance-date shareholders’ funds was 15.1 per cent and the earning rate on capital was 26.4 per cent. Shareholders’ funds totalled $12,232,326, including capital of $6,948,381 in 50c shares.

Shareholders will be asked to approve an increase in nominal capital from s7m to slom. Mr Butland says that there are no present plans to issue the new shares. Tlfe group employs assets of $20,922,009.