Arm. Springhall profit ahead

Press, Volume CXV, Issue 33815, 11 April 1975, Page 12

Arm. Springhall profit ahead

CVeto Zealand Press Association) WELLINGTON.

Armstrong and Springhall (Holdings), Ltd, increased sales and profit during the half-year to December 31, 1974, the directors report.

Sales for the half-year, at $5,769,000, were 22.1 per cent ahead of those for the comparable period in the previous year. This increase in sales enabled the group to absorb the higher operating costs which business generally is experiencing, and still improve its profit for the period by a satisfactory margin. Although the directors consider that under current economic conditions this rate of increase is unlikely to be maintained through the second half, they are confident that the final year’s result should be fully comparable with that of last year.

The result would have been better still had the finance subsidiary, Akarana Leases, Ltd, been able to secure additional funds to finance lease operations. A debenture issue to raise additional finance is currently on the market. The directors have declared an unchanged 2| per cent interim dividend on preference shares and an interim dividend of 5.5 c a share (5J per cent) on ordinary shares, 1 per cent higher than last year. The purpose of the higher interim dividend is to even out the annual payment, and should not be taken as an indication of an increase in the annual distribution, the amount of which can only be

determined when the full year’s results are known.

The dividends will be payable on May 15, ex dividend April 30.