Repco N.Z. exports up on last year

Press, Volume CXV, Issue 33941, 6 September 1975, Page 19

Repco N.Z. exports up on last year

(Neu- Zealand Press Associations WELLINGTON. Repco New Zealand, Ltd. expects that its exports hi the three months to September 30 will exceed those for the whole of the last financial .rear.

Much of this increased de-1 mand in Australia highlight-I the increase in Australia! I costs, the chairman (Mr F j L. Parkin) says in his annua review As already announced the! group net profit fell 10,8 pei cent to $502,972 in the year to June 30. A steady 11 per cent divi- ■ dend (5.5 c a share) requiring! $22,805 is covered 2.5 times, and is pavable on September' 24. The alteration in the sales tax on motor vehicles changed the company’s original equipment supply patterns. Months elapsed before this business restructured to: manufacture the range of vehicles now being assembled. The company suffered a severe loss of equipment business when the production of six-cylinder cars was reduced, Mr Parkin said. Debenture issue Inventories rose substan-! tially before stock levels; were adjusted to relate more closely to current demands.! Increases in material sup-! plies placed some strain on! financial resources, which waL reflected in interest) charges, and higher in-! vestment in stock. As already announced, the company is to make a one-for-four issue of secured convertible debentures, which will convert one-for-one in September 1980. Shareholders will be asked to approve this at a meeting on September 24. The vehicle replacementparts market will grow stronger as vehicle prices increase, and smaller cars are used in greater numbers. The production of components for original equipment purposes will expand with the need to increase local content, and rationalise production to save overseas funds. “At the same time, the, possible effect on vehicle! component sales, from! higher fuel costs, cannot "be ! overlooked,” Mr Parkin says. The profit was after providing $35,958 less for depreciation, at $191,465. and $57,063 less for tax, at $444,512. Unappropriated profits carried forward totalled $995,822 ($689,896 last year). The group balance sheet shows shareholders funds rose from s3.lm to $3.4m, Issued capital was steady at s2m. Total term liabilities in-

creased from $806,454 to; '997.716. mainly because of m increase in secured term oans from $50,000 to 1222,500. There is also al new item, long service leave, I accounting for $67,466. The working capital rose

|5457.915 to S2.lm. and the current ratio rose from 1.9 •to 2.1 to 1. ;• Inventories rose 5386.640 Ito 82.7 m and were ‘he main J contributing items m current assets. Goodwill remained Si 88.000