Trans City goes against the tide

Press, Volume CXV, Issue 33776, 24 February 1975, Page 19

Trans City goes against the tide

«.\ctr Zealand Press Asm i.u.— Copyright) SYDNEY. Trans City Holtline*. ’ tel Australian money market anti merchant bai ing group, had a pre-tax profit of Sim for ilie x month* to December 31. This compart *wi §133,000 for the same six months of 1: ~I.

Trans City's success contrasts with the result of Australian United Corporation. Ltd. which last week reported a loss of Sl.Om for the same period. The net profit of Trans City was 5600.000. after providing $415,000 for tax. The market value of its portfolio at December 31 was more than Sim higher than book value, the managing director (Mr D. A. Living- , stone) said. Total funds employed at the end of the period was sl3om, of which $6.5m reprei seined shareholders' equity >and loan funds. In its review of the.money )market. Trans City said that: there can be no doubt that (the Government considers continued high inflation a (greater danger than unemployment. The rate of reflation in Australia will therefore be very closely controlled, with the growth in money supply: ■ being kept below the rate of) price increase. Such a policy means that interest rates will tend to stay firm until the rate of: price increase begins to diminish, “which it will do once unemployment -goes over the

5 per cent mark, and wage claims are consequently moderated.'' the review said. "Quick action by Western governments to reflate their economies will certainly prevent a depression, but it will still take about four years for business to recover to full activity. “Australia, with so much in its favour, might recover sooner, but only if it halted inflation,” Trans Citv said. Haniniex Hanimex Corporation. Ltd. and Sedic, Ltd. of Japan, have confirmed contracts made in December, 1974, which give ; Hanimex exclusive worldwide distribution rights for 110 and 35mm cameras manufactured by Sedic. Ltd. The contract excepts ceriain specific Sedic customers, but otherwise includes cameras (both Hanimex and any other brand name and label. As part of the contract, Hanimex and Sedic will develop new camera products. Hanimex are extending financial and other assistance to Sedic, including advance delivery orders to ensure regular forward production.