Brierley’s profit rise mainly from N.Z. sources

Press, Volume CXIII, Issue 33384, 16 November 1973, Page 14

Brierley’s profit rise mainly from N.Z. sources

(New Zealand Press Association) WELLINGTON, November 15. The improvement in the group earnings of Brierley Investments, Ltd, in the year to June 30 was derived mainly from New Zealand sources.

This is shown in the accounts, which also show that the profit of the Australian subsidiary, Industrial Equity, Ltd, fell from $1,106,000 to $t‘,007,000.

In his report to shareholders the chairman (Mr R. A Brierley) says that the 1972 forecast that prospects in New Zealand looked, promising proved to be the case. Not only did the existing New Zealand subsidiaries perform well, but a very full programme of acquisition was also undertaken, he said. Asparagus, Ltd, Metters (N.Z.) Ltd, Fumware Industries, Ltd, Klipper (N.Z.), Ltd, Woolcraft (N.Z.), Ltd, and Kidd Garrett Holdings, Ltd, have been acquired and the associate company Australasian Mining and Oil Investments, Ltd, acquired several new subsidiaries, in-. eluding N.Z. Pulping Mills, i Ltd, and Brown Walters and Company, Ltd. The net profit attributable to the parent company was $782,207 compared with

- $626,941 in the previous v year; this represents a re- - turn on capital of 121 per 1 cent. A 24 per cent dividend n has been recommended (22 per cent in 1972). The final

dividend of 13 per cent is being paid from capital reserves and is tax free. "The 1973 result is actualI, ly a little better than it appears, as some of the new capital was issued only late ; in the financial year and the company still holds 39,260 of its own shares (which will be utilised in the forth- ■ coming bonus issue) arising out of the reconstruction of J City Realities, Ltd, Mr Brieri ley says. He said that at balance date the parent company’s proportion of shareholders’ funds was $4,779,607 —representing an asset backing of 370 c for each 50c share. “After the forthcoming I cash and bonus issues, which will increase capital to $1,052,000, net assets will be 250 c a share. Properties and investments at conservative valuations constitute a much higher pro-

portion of the assets than in 1972.” The company was in the process of obtaining full ownership of Shanghai Electric Construction Company, Ltd, whose assets now consist of investments in Britain and America, “which may provide a basis for expansion in those countries in due course.” Mr Brierley says that although . Industrial Equity’s earnings wefe not spectacular by comparison with previous years—although still very satisfactory by ordinary standard—there were nevertheless some areas of solid achievement.