U.P.P. expects to hold profit level

Press, Volume CXIII, Issue 33381, 13 November 1973, Page 20

U.P.P. expects to hold profit level

(Pletp Zealand Press Association) WELLINGTON, November 12. United Publishing and Printing Company, Ltd, newspaper group, is confident of maintaining its record profit of $337,153 .in the year to August 31, the chairman (Mr R. F. Smith) says in the annual report.

The profit was 40.2 per cent or $96,699 higher than in the previous year. At present, business is buoyant, but advertising trends are difficult to forecast, and sales will, in the main, be dependent on future Government fiscal policies, Mr Smith says. All commercial printing subsidiaries showed increased sales and benefits from the merger with the “Wanganui Herald’’ had a large influence on the results, he says. Advertising revenue increased dramatically in the second half of the year. The company is to change its balance date from August 31, to March 31, to be effective from March 31, 1974. I This will reduce the period between the end of the financial years of the subsidiaries and the end of U.P.P.’s own year. The interim dividend, usually paid in June, will now be paid early in April. Mr Smith says this change will have only a minimal effect on the results of the group. The result is after tax, $76,469 higher at $278,837, land depreciation, $22,423 more at $lOO,lBO. The dividend, 3 per cent higher at 11 per cent, takes $41,045 more and was covered 1.4 times. Earning rate on average shareholders’ funds was 18.3 per cent compared with 13.8 per cent previously.

Shareholders’ funds, $191,419 higher at $1,936,060, include steady capital of $1,368,175. . In the last few months, the company has suffered severe restriction with raw materials, particularly the supply of newsprint. Liquidity is at a fairly high level, but because of delays in building and delivery of plant, authorised committed expenditure of $200,000 is outstanding. Stocks of newsprint are lower than desirable. In the next few months the position will be rectified, but naturally at a higher unit cost, says Mr Smith.