Atlas Maj. will continue to diversify growth

Press, Volume CXIV, Issue 33611, 13 August 1974, Page 16

Atlas Maj. will continue to diversify growth

<Xew Zealand Press As«ociation> AUCKLAND. The diversification and profit pattern of Atlas Majestic Industries, Ltd. would change in the current year, said the chairman (Mr C. A. Pearson) in the annual report. The investment in food would rise to 18 per cent of shareholders’ funds, and the property division would contribute its full share of profits.

As announced, group net profit jumped $229,000, or 84 per cent, to $501,000 in the year to March 31. after eliminating the $19,000 (last year $34,000) depreciation recovered on the sale of assets. During the year, shareholders’ funds increased $886,000 to $4,058,000. In percentages, the diversification was: consumer durables: 33 per cent of funds, 71 per cent of profits; property. investment and gen-

era!: 41 per cent of funds, 14 per cent of profits; service: 20 per cent of funds. 15 per cent of profits; food: 6 per, cent of funds, break-even profits. The rise to 18 per cent of funds in food would be accompanied by a reduction in the percentage of funds invested in property in the current year. The profits of joint venture companies had been brought in on an equity basis. Mr Pearson says a broad base has now been established in consumer durables, all sectors increasing their market share and profits. i The profit of $376,000 — | from funds of $1,328,000 — should be at least maintained ■ in the current year. The $1,658,000 shareholders’ funds invested in property,! investment, and general activities, yielded a profit of; $76,000. It included work in progress of $396.000, and the

knew §288.000 investment in| : N.Z. Land Securities. Both! • these ventures should con-I • l tribute to profits in future | i; years. ' The investments in listed ■ i shares (§455,171: market value §471,000) had since the i balance date been affected by . the fall in the sharemarket, . and the short to medium- [ term outlook is difficult to I assess. Other projects indicated good medium to long-term 1 earning capacity and capital growth. The company had I $BlB,OOO of its shareholders’ funds invested in various fields of financial, commercial and consumer service. Profits were §Bl,OOO. It included the 25 per cent ($500,000) in Transvision, which is not expected to contribute materially to profits until 1976-77. In the current year, the $254,000 of funds invested in poultry’ would increase by $650,000. The company would breed, grow, and market the Shaver; broiler chicken and extend its processing activities into .the Auckland area. Because Nature could not accelerate chicken breeding and growing cycles, it would be two to three years before there I were satisfactory profits, i Support was given to the establishment of some specialised fresh chicken shops. A 25 per cent interest was taken in Big Rooster, Ltd, which will establish a chain of cooked and processed food outlets. The profit was after depreciation of $51,000 (down $89,000 because of the nonconsolidation of the Atlas appliances joint venture). No tax was payable. The dividend, raised from 12 J per cent to 15 per cent despite last year’s one-for-five bonus issue, took §207,000. The earning rate on shareholders’ funds increased from 9 per cent to 13.9 per cent, and on capital from 18.8 per cent to 36.3 per cent. The increase in shareholders’ funds partly resulted from §163,000 capital profits and §362,000 revaluation of land and buildings. Capital was increased by $263,000 to §1,465,000. Minorities, a new item, are $48,000, while, after the earlier debenture issue had been repaid, term liabilities were increased by §628,000 Ito §1,101,000. The balance sheet showed much improved liquidity, with the current ratio at 1.8.

Russian harvest Nearly one-third of the Soviet Union’s cereal crops had been gathered, and the grain harvest was in full swing throughout the country, the Communist Party newspaper, “Pravda,” reported today. Previous reports have indicated a final yield within the year’s plan of 205.4 m tons. Last year there was a record harvest of more than 220 m tons. — Moscow, August 9.