Firth sees another good year

Press, Volume CXIII, Issue 33252, 15 June 1973, Page 15

Firth sees another good year

(New Zealand Press Association > AUCKLAND. June 14. Firth Industries, Ltd, expects another good result in the current year, the chairman (Mr E. B. Firth) says in the annual report ~ for the year to March 31

As reported last week, Firth has made a take-over bid for Columbia Blocks, Ltd, Christchurch. Mr Firth says in his report that price increases will have to be granted, and that 'productive capacity at some I branches has been fully taken up. New plant will need to be 'installed and it would be unreasonable to expect profit to increase at the same rate as last year, he says. However, continued sales growth is expected and new projects and subsidiaries, particularly Conroe, Ltd, New Plymouth, should ensure that the current year will be another gratifying one for 1 shareholders, Mr Firth says.' PROFIT He says that last year’s' unexpectedly good net profit [more than doubled to [5489,773, and was the result :of a substantial rise in sales, close attention to profitability i of labour-intensive precast operations, increased mechan-! ■ isation, and a good ,contri-l ’ bution from Amners Lime - Company, Ltd. ■ During the year more ‘ property was bought next to ' the Te Rapa holding and at > a North Shore site, and two , unused properties at Taupo ’ and Putaruni were sold. s Plant additions included > mechanised handling devices I for the block plants arid a larger readymix plant at Hamilton. New block plants are atj varying stages of develop-! ment at New Plymouth and’ Hamilton and the vehicles i fleet will be further improved. “We are also looking at several other interesting new' projects which, if proceeded with, will require substantial, capital investment,” Mr Firth! says. This is one reason for the current one-for-eight cash issue. The profit was after providing $151,781 more for depreciation. at $388,046 and Odlin offer The total of $114,400 of registered debenture stock ini the C. and A. Odlin Timber; and Hardware Company, Ltd,' matures on June 30, and the company is offering to hoi-1 ders of that stock, the right to convert their stock to 6| per cent debentures maturing on June 30, 1978. This offer is available only to the present holders of stock in this category, and payment will [be made by cheque to those who do not wish to take adwantage of this offer. The trustees for the debenture holders, are Trustees Execujtors and Agency Company of New Zealand, Ltd.

$186,394 more for tax at $359,051 (including $19,542 deferred tax). Payroll tax took $32,853, compared with $23,774. The dividend, 2 per cent higher at 12 per cent, requires $130,587, up from $101,525. Shares in both the 1:10 bonus and the cash issue do not rank for the final dividend. The earning rate on average shareholders’ funds rose ! from 13.2 per cent to 23.3 per cent and that on capital from ! 22.4 per cent to 43 per cent, equivalent to 39.1 per cent on post-bonus capital.