Healing profit, sales higher

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

Healing profit, sales higher

(N.Z. Press Association) AUCKLAND. The unaudited accounts of Healing Industries, Ltd, for the six months t,o September 30 show “substantial increases in sales and profit,” but the directors of the Auckland manufacturer of bicycles, special paints and metal finishes, warn in their interim report that things may not be as good in the second half of the current year. The turnover rose 47 per cent on the first half of last year, mainly because of the growing demand for bicycles and accessories. All divisions were showing healthy expansion, the directors said. The Mount Wellington

sand blasting subsidiary, acquired earlier this year, was making its contribution to earnings. The inflated cost of stocks in the company’s warehouses and the tightening of credit facilities were placing a serious pressure on liquidity. This had forced the company to adopt a tighter credit policy, which in due course would affect sales. The next six months may, therefore, adversely affect any significant advance for the full year, they said. The company does not pay interim dividends. In 1973-74, after a 55 per cent jump in net profit, the dividend was raised from 10 per cent to 12 per cent.