M.S.D.-Speirs recalls Government assurance

Press, Volume CXV, Issue 33917, 9 August 1975, Page 18

M.S.D.-Speirs recalls Government assurance

' (New Zealand Press Association) WELLINGTON. A warning to the Government of a possible loss of confidence in the building industry is given by the chairman of M.S.D.-Speirs, Ltd (Mr! O. F. Haylock), in his annual review.

“When the present administration took office in 1972, the industry was assured that the ‘boom and bust’ cycles of the past would not be repeated. “We have experienced a ‘boom,’ and if the ’bust’ which appears to be following is allowed to develop, it is likely that confidence inside this industry will be lost for ever. This must not be allowed to happen,” Mr Haylock said. "This company, while aware that some fluctuation in the level of demand is inevitable, is convinced that there is a large unsatisfied need for housing still to be met. “In spite of some uncertainties in the immediate outlook, it is intended to continue with the present

programme of plant improvements and replacement, market expansion, land development, and product research,” said Mr Haylock. As reported, the group net profit for the year to March 31 rose 9.8 per cent to $818,002. This was after providing $32,896 more at $142,474 for depreciation, and $56,610 more at $617,636 for taxation. There was also a capital profit of $4582. The final dividend of 9c a share makes the total for

the year a steady 18c a! share (18 per cent). The dividend requires $330,380. and is covered 2.5 times. Shareholders are invited to subscribe to an issue of secured convertible debentures which will raise up to sl.2m. A further issue of secured debentures is planned for later in the year, the directors say. Buildings, freehold land, and forests were revalued during the year, with the result that $600,372 has been added to the balance-sheet values. Shareholders’ funds increased sl.7m to $5,331,907 including paid-up capital of $1,960,449 ($1,652,456). Long-term liabilities were increased $521,359 to $3,023,341. Working capital rose $519,977 to $3.4m, but the current ratio fell from 2.6 to 2.2 to 1. Fixed assets rose $834,568 to s3.om and investments rose $464,363 to $808,404. Subdivisional land is entered at $1,403,916 ($953,413). Stocks and work in progress rose from $2.9m to $3.7m. The earning rate on shareholders’ funds fell from 20.7 per cent to 15.3 per cent.