W. R. Carpenter profit trend not maintained

Press, Volume CXIV, Issue 33672, 23 October 1974, Page 20

W. R. Carpenter profit trend not maintained

(New Zealand Press Association—Copyright) SYDNEY. i The optimism expressed by the directors of W. R. Carpenter Hold- < ings, Ltd, in March has proved unfounded, because the net trading profit for the year ended June 30 rose only marginally, to sB.2m, after an increase of 15.2 per cent in the first six month of the year.

The total profit for the year, after taking into account extraordinary items, slumped from sB.sm to $6.2m. This was after the writeoff of $2,4m because of the failure of Mainline Corpor-

I crease in trading and investment profits of 12.9 per • cent, after a 17 per cent rise •in turnover to s6sm. The Papua New Guinea I merchandise and . service divisions also increased profits. The group’s tax provision rose $1,360,000 to $4,980,000. The final ordinary dividend is a steady 10 per cent i (5c a share), making the annual rate a steady 20 per | cent on capital increased by |a one-for-five bonus issue. The dividend cover fell from 2.3 to 1.9. Land and buildings, held for investment, and a major redevelopment have been revalued downward by a net $4.7m.

ation, Ltd. Of this amount, I sl.9m represents the book’ value of the one million! Mainline shares held by Car- 1 penter. An unsecured loan to an associated company, and: possible future losses in an-i other joint company,’ totalling $580,000, has also been written-off. However, the extent ofj these lc.sses will be deter-! mined by the receiver of i Mainline (Mr J. H. Jamison), ■ and possibly litigation. The trading results for the second-half of the year were lower because of high money costs, the slowing down of certain projects, with a resultant deferment of profit to a later accounting period, and increased tax rates in Papua New Guinea. The group’s Australian interests, which accounted | for 61.5 per cent of 1972-73 earnings, had mixed results in 1973-74. The illuminated signs and lighting division increased its net profit' slightly, but profit margins were again! reduced. W. R. Carpenter Finance Corporation, Ltd, increased its net profit from $440,000 to $560,000 after providing a further $150,000 for doubtful debts and making a special $lOO,OOO provision for expected losses on short-term borrowings. The 65 per cent owned Southern Pacific Insurance Company, Ltd, suffered a slump in net profit from $450,000 to $30,000 after a special $50,000 provision for additional costs of workers’ compensation claims because of inflation. The Arrowfield vineyard and winery produced and sold 1023 tonnes of grapes, and this year’s crop is expected to be more than doubled. The Yarra Falls textile division was substantially affected by the removal of import quotas and the writ-ing-down of fashion merchandise and raw materials. Further rationalisation has been made, and plans are being made to redevelop the Abbotsford properties. The South Pacific trading activities, which provided nearly 30 per cent of 197273 earning, showed an in-