ICI N.Z. developed many new activities

Press, Volume CXIV, Issue 33448, 1 February 1974, Page 21

ICI N.Z. developed many new activities

Sales of ICI New Zealand. Ltd. for the year Ip September 30 increased 32 per cent to almost $67 million, the chairman and managing director (Mr D. B. Green) says in the directors' reportgwith the annual accounts. i

; This reflected the return of confidence in business activity during 1972-73. and enabled the higher profit to be achieved in spite of the continued rise in operating costs, Mr Green says. Although many new activities were developed during the year, the results have not been materially affected by items of an abnormal character, in the opinion of the 'directors. . A 70 per cent shareholding ;was acquired in Upex Industries (N.Z.), Ltd, engaged in i the production and marketing

iof polythene film and rigid I and flexible plastic pipes. Industrial Containers. Ltd.' in which ICI holds a 50 per cent shareholding | [interest, was formed. This; :firm manufactures heavy in-! jection moulded containers' iin Christchurch and Auck-: land. (The seating at Q.E.11 J Park for the Commonwealth Games is one of this com-; pany’s products). A feasibility study of ■ developing the Chatham. Islands peat deposits was; commenced in conjunction! with Dillingham Overseas! Corporation and Pan Pacific; Mining Corporation, Ltd. with the co-operation of the ! D.S.I.R. The ICI subsidiary, Min-| zimp Exploration, Ltd, joined, with Newmont Pty, Ltd, in a fifty-fifty joint venture to i explore for disseminated gold deposits in New Zealand, and this work is proceeding. In fibres, planning is well' advanced for the manufacture: of the polyester fibre tery-i lene at at Wiri, Auckland,) plant. The research and development department was ex-1 panded during the year. An: increasing number of projects are under investigation.: During the year investment: on fixed capital amounted to $2,080,000. As announced in November, group net profit rose 80.1 per cent to $4,221,000. after providing $177,000 more for: depreciation at $1,221,000, and $1,771,000 more for taxation at $3,999,000. The earning rate on average shareholders’ funds rose to 17.9 per cent. The recommended dividend of 12 per cent will take $1,636,000, covered 2.6. times by the profit. Shareholders’ equity in the: group is 54.9 per cent; the: paid-up capital of $13,630,000;

Icomparesi with reserves of |511.230.00p. Minority interests were. $2,479,000. Working capital increased ($5,406,000 to $17,917,000; the (current radio is 2.5 to 1. Of (the current assets of ’529.790.0C0, $4,912,000 is held in liquid funds. The group's deferred liability arising from the change Ito the PJA.Y.E. basis of tax payments’ amounts to $3,283,001) in the next six years, the accounts show. Total assets employed by the group at balance date (were $45(.3 million, compared (with $38.6 million the year ■ before, i ! ICT New Zealand shares past sold |at 220 c: at that price (they yield 5.5 per cent from (dividend, and 14.1 per cent (from ea.rnings. The pricelearnings; ratio is 7.1. and the inet tangible assets backing a (100 c share is 155 c.