U.E.B. expects a steady profit

Press, Volume CXIV, Issue 33693, 16 November 1974, Page 20

U.E.B. expects a steady profit

Trading of U.E.B. Industries, Ltd, in New Zealand and Australia expanded with the buoyant economic conditions which prevailed, sales being 21 per cent ahead of those for the same period last year, the directors say in the half-yearly report.

Net profit after tax (subject to final audit) was slightly ahead of the profit for that period.

I New Zealand exports, chiefly consisting of carpets* ■have declined because of the i economic conditions prevail- : ing in the major export marjkets. Further, severe competition has been experienced in Australia from cheap imported synthetic carpets.

Financial restrictions beyond the company’s control have made it difficult to finance existing business, let alone to purchase replacement plant and to provide for expansion growth. The very I real need for increased funds to offset inflationary pressures must be recognised. . Operating efficiency, stock control and debtor’s collections have been receiving close and constant attention to ensure the most effective use of available funds. Additional money, vital to the company to enable it to con. tinue its viable effective contribution to industry, have been and are continuing to be borrowed on the best possibly terms available in today’s cur* rency market. At the present time, although sales are still running at high levels, a slowdown in demand has become apparent and delivery times are now more realistic than they have been. The directors are confident that even with this levelling out the profit figures to March, 1975, will match those of last year. A steady interim dividend of 6 per cent will be paid on December 10, ex dividend November 19.