Allied Group trading difficulties continue

Press, Volume CXV, Issue 33934, 29 August 1975, Page 13

Allied Group trading difficulties continue

(N’etc Zealand Press Association > , AUCKLAND. Difficult trading is continuing for Allied Group, Ltd, the diversified Auckland finance, • motor and property group which last month reported a 67.1 per cent profit slump to 8149,911, lor the year to March 31.

The chirman (Mr K. M. Griffiths) says in his annual review, that the directors have taken measures to overcome the difficult conditions as far as possible, and look forward to an improvement in results for the current year. With the exception of the motor dealing companies, all

subsidiaries traded profitably in the latest year. The finance company’s profits and receivables rose slightly during the year and its result was considered satisfactory. Liquidity was difficult in late 1974 and the company was unable to take advantage of all the business offering then. But present liquidity is satisfactory, Mr Griffiths says.

Since March 31 a substantial overseas repayment has ! been made, and some loans have been issued with overseas exchange risk accepted by the borrower. The result is that at the date of the report (July 29) exposure to overseas exchange fluctuations was about half that of the year under review, Mr Griffiths says. In the accounts, $260,290 is written off from the exchange fluctuation account.

The motor companies traded satisfactorily in the first six months, but as a result of Government measures affecting the industry, losses were incurred for the year on a reduced turnover. Mr Griffiths says conditions for the current year are un-

likely to be ven different, but directors are confident that measures they have taken will produce much improved results. The result was after depreciation of $72,560 (up $26,912). tax of $108,459 (down $210,704), and outside shareholders’ share of $16,249 (down $286). The 3 per cent interim dividend, only payment for the year, required $75,000. This compares with a 5 per cent [final dividend last year The earning rate on capital is 6 percent (18.2 per cent), and that on shareholders' funds 5.9 per cent [(17.6 percent). Shareholders’ funds are down $125,458 to $2.4m, including steady capital of $2.5m.