COMMERCIAL Ballins profit 6.5% higher

Press, Volume CXV, Issue 34021, 9 December 1975, Page 26

COMMERCIAL Ballins profit 6.5% higher

At a time when most companies are reporting lower earnings, and liquidity problems, Ballins Industries, Ltd, the dvnamic Christchurch-based wine and spirit merchant, soft drink manufacturer. and hotel owner, is managing to defy the trend; liquidity is good, and the group net profit for the six months to September 30 increased 6.5 per cent.

The directors say in the preliminary half-yearly report that the turnover was 115 per cent higher, compared with the same period last sear. "Although, in common with most other companies, problems of rising costs and ■deceasing financial charges were faced the unaudited net profit for the period under review after providing for tax shows an increase of 6.5 per cent over the previous year," the directors »y. •The directors consider the result, which must be related to increased share capital to be very satisfactory bearing in mind the stringent price controls under which the company operates in all divisions. "T rading since September continues at the increased levels and while the directors hesitate to predict the economic climate, they believe that the group is

soundly based to meet the trading problems likely to be encountered within the next few months. "The board is appreciative iof the continued financial support of share and debenture holders which has been evidenced particularly by the early filling of recent debenture issues, with the result that the company has not been subjected to any liquidity problems.” Apart from the debenture issues this year, the group made a successful one-for-five cash issue in October last year. In the latest full year the company reported a 7 per cent profit fall on an 18 per , cent higher turnover — after I absorbing substantial increases in overheads. The latest results, therefore, retrieve the group’s position with regard to profit, although this must be related to higher capital and much higher turnover.

An interim dividend of 6: per cent has been declared.. As previously this dividend;

will be paid 1 per cent from capital reserves (which will not be liable for taxation in the hands of shareholders) and 5 per cent from trading profits. A transfer of a commensurate amount of profit from revenue has been made to reserves to ensure that they are not diminished. The interim dividend will be paid on January 16, about two weeks earlier than has previously been the custom; shares will become ex dividend on December 19.