Mason Industries well ahead

Press, Volume CXIV, Issue 33693, 16 November 1974, Page 21

Mason Industries well ahead

The turnover of Mason Industries, Ltd, has continued to expand, sales for the six months to September 30 being close to budget and 33 per cent higher than in the same period last year, the directors say in the half-yearly report.

Unaudited accounts show profits slightly above budget with before-tax profit 35 per cent higher, and after-tax 24 per cent when compared with last year; the difference before and after tax is brought about by tax this year at 37 per cent of profits as compared with a low 31 per cent last year. Higher tax for this period results from decreased capital expenditure and, in consequence, lower investment allowances, the directors say.

Steady 'interim dividends of 3 per cent tax-free on ordinary shares held before the recent issue, and of 2J per cent on A preference shares, will be paid on December 9, ex dividend November 20. All group operations show returns sufficiently ahead of the previous year to more than counter the depreciation in money value from current rates of inflation, the directors say. The slowing in sales of capital equipment, and problems with supplies, have occasioned the merchant division to be behind budget, but this is compensated for by manufacturing divisions being ahead of budget.

To meet the rising costs of labour and materials and expansion in volume, plus the tight monetary situation, additional finance of about slm is being brought in to the business. This is derived from a share issue, additional mortgages, and a fiveyear Eurodollar loan which provides $NZ550,000. Conservative gearing ratios continue to be maintained, the directors say. Although results for the half-year are very satisfactory, the same rate of growth may not be maintained over the difficult trading period which is expected early next year. Nevertheless, the board is confident that profit for the full year will exceed that of the previous year, the directors say.