COMMERCIAL Mason confident of progress

Press, Volume CXIV, Issue 33587, 16 July 1974, Page 19

COMMERCIAL Mason confident of progress

CVew Zealand Press Association) AUCKLAND. The directors of Mason Industries, Ltd. have confidence in the company’s ability to continue to progress in spite of the present economic situation, the chairman (Mr F. A. Reeves) says in the annual report.

Further improvements were expected from manufacturing sections and full: advantage was still to co' e from the new and refurbished premises of the merchant operations. Increased investment in '■ stocks (up $612,910 to $2,943,448) and debtors; ($1,136,963 higher at $3,384,268) in part reflected current rapid inflation and tight liquidity The factors which would advance or retard development this year were mainly external, and to! some extent hard to predict, i Buoyant trading last year carried through the present,; and the company, had a sat- j isfactory order book and an. improved capacity to benefitl from it. The profit for the year to; March 31 was 66.7 per cent! or $241,471 higher at! 5603.112. Sales were 24.7 per! cent or $3,040,425 higher at I $15,334,668. A change to equity ac-; counting increased the profit; from a 50 per cent share in Safeguard Supplies Ltd and a 33 and one third per cent: share in Weldwell (N.Z.)i Ltd, equity profits of $69,124 were included in the profit, figure. A $400,000 loan was arranged with the Development Finance Corporation, $350,000 of which was taken up before March 31. This "export suspensory” loan specifically 7 related to Christchurch foundry development and incorporated a substantial potential rebate, I

depending on the level of the foundry’s export-related performances in the next three to five years. The consolidation of Wellington operations in new; buildings at Petone had been financed under a favourable lotig-term leaseback arrangement which made provision for a share of any capital ’ gains. The scaling down of Mason Engineers Ltd, Auckland, had resulted in a good return in the remaining investment. This company now concentrated on ship and container repairs and general engineering and, with its foundry at Mt Wellington.' should continue to show worthwhile returns. In Christchurch, sustantial capital expenditure is being incurred in upgrading the j Mason Anderson foundry. South-East Asia, particularly Indonesia, provided an I increasing volume of boiler' orders. Australian orders had improved and new markets had been opened in Thailand, Laos and the People’s Republic of China. The result was after tax, $96,891 more at $239,552, and depreciation '583,221 more at $324,121. The dividend 11 per cent compared with 9 per cent last year,: took $49,776 more at i $229,226. The earning rate on shareholders’ funds rose from 8.4; per cent to 14.2 per cent. Shareholders' funds were $ 1,468,750 higher at I $5,619,007, including capital! higher at $1,956,599. I