Hanimex half profit falls

Press, Volume CXV, Issue 33804, 29 March 1975, Page 19

Hanimex half profit falls

(N.Z. Press Assn—Copyright) SYDNEY.

Heavy cost increases sent the operating profit of Hanimex Corporation, Ltd, back 27 per cent in the half year to December 31. It fell ; $350,215 to $946,982. I The group’s chairman (Mr lA. Uther) says that oper- • ating expenses leaped in a ■ very short period. He bei lieves however, that the i group will overcome these | problems in 1975, and resume profit growth in the current year. Cost increases and a severe reduction in export incentive took a heavy toll on export production. The photofinishing business operated satisfactorily, and a new plant in Melbourne is expected to be opened before December. Distribution in the U.K. was affected by economic conditions and profits from this source were “significantly” reduced. The German and French subsidiaries traded very satisfactorily while the U.S. operations suffered a small loss. Mr Uther says that profits from New Zealand were lower than the previous corresponding half year. Sales of Hanimex in the six months rose 40.5 per cent from $21.5m to $30.2m. The interim dividend is steady at 10 per cent. Provision tax was more than halved at $332,735 but depreciation was $28,275 higher at $320,913.