COMMERCIAL Rex Consol. exports to 50 countries

Press, Volume CXIV, Issue 33579, 6 July 1974, Page 17

COMMERCIAL Rex Consol. exports to 50 countries

(New Zealand Press Association) AUCKLAND. Rex Consolidated, Ltd, diversified manufacturing group, was active in about 50 countries, and could increase its exports many times over if it had the manufacturing capacity, the managing-director (Mr F. Bruell) says in the annual report.

The company has allowed several manufacturers in Europe and Africa to manufacture under licence.

The financial position of the group was strong and the directors believed that funds were adequate to cover budgeted capital expenditure and normal trading requirements during the current year without having recourse to further share capital, the chairman (Mr L. N. Ross) said. The group had had to make far-reaching decisions in its international marketing policy and operations, Mr Bruell said.

It decided early in the financial year to allocate a larger proportion of output to the New Zealand market, so that production available to export was reduced. The company also had to

regard the possible loss of overseas contacts.

In the year to March 31 exports rose a further 12j per cent and the number of countries to which the company exported increased. Group sales rose 25.4 per cent to a record $6.9m. The group net profit was 38.3 per cent or $143,800 higher at $520,103. It was after providing $116,143 more at $514,843 for tax and $49,551 at $241,626 for depreciation. The steady 12 per cent dividend was covered 2.8 times. The earning rate on shareholders’ funds was 17.3 per cent compared with 15.5 per cent. Shareholders funds were $910,176 higher at $3,468,738, including capita! raised by $252,600 to $1,515,600 by the one-for-five cash issue in April. The company plans to make a one-for-four bonus issue which will increase capital to $1,894,500. This will be discussed at the annual meeting on July 19. Shareholders will also vote on increasing nominal capital from s2m to ssm.

Brooker share sought

The Sydney, sharebroker, J. M. Messara and Company, says that it has been instructed by a client to purchase on his behalf 237,600 ordinary shares in Brooker Holdings, Ltd. Steel and aluminium fabricator. The purchase would represent 10 per cent of the company’s capital and the purchase price of 75c is 20c higher than the last sale made.