A. Springhall margins fall; finance arranged

Press, Volume CXVI, Issue 34106, 19 March 1976, Page 10

A. Springhall margins fall; finance arranged

(Sew Zealand Press Association)

WELLINGTON

Sales revenue rose but net profit fell the directors of Armstrong and Springhall (Holdings), Ltd, say in their report for the half-year to December 31.

“Many of the company’s! lines come within the i recently announced import deposit scheme, but the 1 directors have been able to make satisfactory financial arrangements to cover the necessary Reserve Bank: deposits.” the chairman (Mr! .1. D. Pottinger) says. h Since the last annual re-

port was issued, the ordinary capital of the company' has increased by $149,857 to $1,359,157 reflecting the 11 for 10 bonus issue made in November 1975, and a smaller number of shares has been issued in the acquisition of a micro-film business. The unaudited profit fell;

•i 9.7 per cent to $222,100. after sales at $5,945,000 > were 3.1 per cent higher ■compared with the previous 11 corresponding period. i Higher operating costs : affected the net result, the --directors say. ! Trading conditions during the period under review Il were challenging, and the ■ directors are fully aware of I the fact that the economic ! problems which the country I still faces could make the second half of the year also a difficult period. Nevertheless, the reorganisation which has taken place during the last fewyears has strengthened the structure of the company considerably, and it is well equipped to meet the challenges ahead. The company’s executives I have kept fully abreast of I developments overseas, and ! the company is able to offer ■ a range of modern electronic I machinery designed to meet ! the requirements of an increasingly sophisticated mar!ket. ! An unchanged interim - dividend of 5| per cent (5.5 c a share) requiring $74,753 (last year $66,495) and cov- : ered 2.9 times by profit after deducting the prefer- ' ence dividend requirement, will be paid on May 13.

Meat export profits

Project Development Corporation, Ltd, made a good recovery in the year to December 31 because of a firmer export beef market in the second half of the year. The group had a net profit of sAust2B3,ooo compared . with a previous loss of I $2,333,000. The meat, division of the company made a successful entry into the Egyptian beef market and other new markets. The directors said that the construction division also continued to improve profits.