N.Z. sharemarket trend

Press, Volume CXIV, Issue 33654, 2 October 1974, Page 20

N.Z. sharemarket trend

20 THE PRESS, WEDNESDAY, OCTOBER 2. 1974. COMMERCIAL __ Labour and su restricted M. The improvement in the net profit of IV Ltd, in the year to June 30 may be attributed to coupled with a reduction in overhead costs. Very buoyant market con- ment, it would be foolhardy ditions enabted the company to predict beyond the first to make the record profit — half of the current vear. which was not foreseen at This looks good, the half-year. But such con- The company intends to ditions are unlikely to con- build a new factory on a tinue, shareholders are two-acre site in the Waiwarned by the chairman (Mr rakei Road industrial area, G. W. Hunt) in the annual as the present lease expire' report. at the end of 1976. During the year, the com- As announced, net profit pany experienced excess rose 31.9 per cent’ to a demand for its products, record $63,702. It was after beyond the capacity of its providing $1500 more for resources. Material suppliers depreciation at $32,140 and were unable to cope, and $13,03.3 more for taxation at proper co-ordination of sup- $49,285. plies for production had not The ordinary dividend has been possible. been increased from 6 to 8 Mr Hunt blames Govern- per cent, taking $23,932 ment-propelled wage rises covered 2.6 times by profit, and price _ and profit con- The earning rate on averipplies O ’Brien O’Brien and Company, an increase in sales value i age ordinary’ shareholders’ funds increases from 10.0 to 12.4 per cent. Working capital again improved, from $358,554 to $431,109. The current ratio is 3.8. Ordinary shareholders’ equity is 71.1 per cent; the funds are represented by capital of $328,749 (including $29,600 preference) and $220,598 reserves. The last reported sale of the shares was at 46c. On that basis, they yield 8.9 per cent from dividend, and 22.4 per cent from earnings. The price-earnings ratio is 4.5, and the net tangible assets backing for each 50c ordinary share is 87c. Many debenture issues now on market The scramble by New Zealand’s finance houses for a share of public investment moneys is intensifying, and three of the major croups have joined the ranks of debenture issues. “ Among these, U.D.C. is a The Trustees Executors and for secured debenture stock newcomer to the debenture Agency Company of New and unsecured notes Marac fieid - Zealand, Ltd, has been ap- seeks $6m with a right to A number of financiers who pointed the trustee for the accept over-subscriptions uo had previously relied on un- debenture holders. t0 a sum not exceeding a secured deposits were forced further $8m vceumg a ! Commenting on the prein the Interest on Deposit' *>*03(11311(18 va.hng ] "ve«ment climate, Regulations from May 31. ' Broadlands Dominion aging director \airt B.N.Z. Finance and Lom-Group has opened i°ts vfry 8 pleased withVe sup b « d . u am u ng others twenty-first debenture issue port gained from the oubhe .affected by the change. —a $15m offering which, it with Marac’s last P jssue TT sa - vs - was brought to market;which raised more than $7m I 11 f ,two months earlier than This represented an oven planned because of the sue-‘subscription in excess of cess of its last $15m issue $lm, he said. U.D.C. Group Holdings, m June “So that our investment Ltd. is making an issue of The interest rates are the plans appeal to as many registered secured debenture!same as those for the June people as possible we have stock. This is somewhat of; issue, except in the case of simplified much of’our pros a milestone in the history of long-term stock. pectus,” said Mr Rose “As a the group, as in the past the For investments of seven ‘ result, the booklet gives a group raised most of its years and over, the interest clear idea of how finance finance by way of unsecured rate is a matter of negotia- companies work, how indeposits. ,tion between Broadlands and vestors’ monev is’used what Current unsecured deposit- (the investor. In the June \ security is offered to protect ors of U.D.C. Finance, Ltd, issue, the company offered money invested at higher the main operating company, 9} per cent seven-year to •' than-average interest rate' are being offered the oppor-|nine-year terms and 91 per and so on Also we will tunity of converting existing cent for 10 years and’ up- now accept minimum in N.Z. mai and The New Zealant weak in quiet tradin' leaders were 1c or 2 index showed a new rises among the retai and stock and static tone of these section RISES New Zealand Price Var’ A S Paterson nts 130 10 Ballins .. 96 2 Beath . . 56 1 Challenge . . 134 1 NZMC .. 98 2 NZ News .. 220 5 Wwths NZ .. 62 1 Daily volume A total of 104,800 share was sold on New Zealanc stock exchanges yesterday 1550 more than on Monday Industrial issues totalle'c 94,800 (Monday 99,750) ant mining issues 10,000 (Mondax 3500). Some of the most active issues were: Dorn. Brew .. 21,500 L. and M. .. 10,000 Forest .. .. 6,400 Feltex .. 4,600 MlSy W111VI1 1IQVC ll'JL U111V alienated the confidence of businessmen and the investing public but created new and serious problems for management. This applies particularly to labourintensive industries such as footwear manufacture, he says. Because competent staff are difficult to. find, the company continues to develop satellite workrooms in the suburbs to attract female, employees. A new workroom has also been opened at Rakaia. Sales for the year were limited only by problems of supply and the availability: of labour. The forward order position for all products is good. But with stagflation already in view, says Mr Hunt, and New Zealand Cement nnwri'l" l/ik'VATOY* issue - , Negotiation is becoming a U.D.C. is seeking an un-mew term for longer finance specified amount, at least un-(company stock. It indicates til it is known how many of an unwillingness to adver:he unsecured depositors willjtise publicly just how high take up their conversion; they are prepared to go to rights. j attract this sort of money. The latest balance-sheet! Broadlands is also offering or the group showed, a new scheme — its retireborrowings from the public; ment annuity plan. °* tnore than $24m — ofl The company gives the which more than $22m was; example of a person at the by way of unsecured deposits.-:aged of 60, investing $10,000. Terms and interest rates*! under this scheme and reare: six months 5| per cent;* ceiving, from age 65 to 80 a one year 6 per cent; two guaranteed annual income of, vear 6j per cent; three years $1776. 7 per cent; four years 7| per cent; five years 10 per cent. V/I' The amount of the stock 1*131*3 C which may be issued is imited by the secured trust Showing increasing awaredeed to an amount — includ- ness of the public’s requireng prior mortgages — equal ments, Marac Finance, Ltd, a o six times the shareholders’ major subsidiary of the VC3V1UC11L amounts or Sou not $100 as in the past”. Two interesting features of the Marac prospectus are the higher asset-backing for debentures, and the introduction of a 20-year term m all categories. pi uiii lower 1 (Net© Zealand Press Association) WELLINGTON. The group net profit of New Zealand Cement Holdings, Ltd, fell 2.9 per cent to .$1,045,227 in the year to July 31 the directors say in a preliminary report. The profit comes after prcH $10,773,177, $1,798,693 higher vision for taxation, which than at the same time last was $87,460 lower at $620,325 year. and repreciation, which was The directors will recom??^<r>n P L ec L atlon ' h y , ' as >mend a final dividend of 5c iV.Z. sharemarket trend Rises Falls N.Z.U. index Turnover September 20 7 35 273.79 148 450 September 23 7 26 273.25 98,300 September 24 6 26 271.20 101 800 September 25 22 13 273.21 136900 September 26 24 12 275.87 141.300 September 27 14 18 274.41 129 900 September 30 7 24 273.92 103 250 October 1 7 29 270.27* * Low for year.