A.B. Cables profit fell

Press, Volume CXIV, Issue 33655, 3 October 1974, Page 16

A.B. Cables profit fell

Although sales were up in the six months to June 30 compared with the same period for 1973, the unaudited net profit was $253,161 compared with $340,599, the chairman of Associated British Cables, Ltd (Mr A. S. Don) reports.

Increased costs of raw materials, shortage of labour, and the refusal by price control authorities to allow, in full, a price increase caused the decline. A further increase in May relieved the situation, but this had little effect on the result, Mr Don says. Sales, particularly of building wires, for the third quarter were substantially ahead of those for the corresponding period in 1973, and with orders on hand and the present market demand for the companys products, it is expected that a satisfactory result for the year will be achieved. Price-control regulations, now in force, limit the profits to the average profit on turnover for the four years 1970 to 1973. The result for the half year was below of this average, but it is estimated that, with the decrease in the cost of copper since June, and the improvement in supplies of p.v.c. resins, the overall profit for the year will come near the allowable limit.

Late arrival of shipments of p.v.c, resins has resulted in an accumulation of stocks. This coincided with increased costs of copper to create a liquidity situation not previously experienced by the company, he says. A steady interim dividend of 51 per cent is payable on October 30, ex-dividend October 9.