Golden Bay expects lower demand

Press, Volume CXVI, Issue 34128, 14 April 1976, Page 24

Golden Bay expects lower demand

'New Zealand Association > WELLINGTON. Indications are that is going- to he another difficult year for all companies associated with the building and construction industry, the chairman of Golden Bay Cement Company. Ltd (Mr 1. T. Cook) says in the annual report.

Cement sales were reason able, but the work ahead <U the construction industry waist a much lower level thar (last year. Mr Cook said. ! Government restraint; would undoubtedly after' public sector spending, hr said. The accounts tor the yeai to December 31. show* thai the 15 per cent rise in ne’ profits to $1,588 515 was nrin cipallv the result of reducer provision for taxation. Taxation-provision re duced $140,000 from $540 40( iin 1974 to $409 000 Ther* I was a provision for deferrer taxation of $124,800 includer jin the total taxation o I $409,000. i The notes to the account; j showed an increase in th< lvalue of “consumable aids’ iof $226,255 during 1975 which had been claimed foi | tax purposes only and no 'written off. as in preview I years. Golde.i Bay’s equitv shari lof the profits of associater : companies was arrived a I after full provision was madi i for Golden Bay s share o

1 the foreign exchange losses] 'which Wilsons (N.Z.) Port-’ land Cement, Ltd (50 per cent : owned) would have had to I bear had repayment of its! ] overseas loans taken place at| I balance-date. The cement sales of Golden Bay and Wilsons to-! fgether fell 6.5 per cent, from 1718,225 tonnes to 671,184, •tonnes. I The reduction in volume] : was caused mainly by the: •fall in demand particularly] in the Auckland area, in the] I last half of 1975. but a defect in the propulsion machinery of the Cement King 1 necessitated its withdrawal' .[for modifications, which had' I been completed. The directors did not regard the level of profits ] being generated by the funds invested in the company’s ; cement-making activities as satisfactory. Golden Bay was the first ’ company to appear before the new Commerce Commis- ] sion in a public hearing, and ''in February it was allowed a! •i price increase of 220 c a jtonne, which Mr Cook' said, 'would assist the company. The cement-carrying ves-i sei "Golden Bay” was expected to be sold to an overseas buyer soon. ] The financial reports show, ! that net asset-backing peri ordinary share rose during l the year from /6c to 79c. The return on ordinary capita! rose from 12.4 per' cent to 14.3 per cent, and oni I shareholders’ funds from 8.2 j iper cent to 9 I per cent. : —_

Ihe steady 10 per cent dividend (5c a share) was covered 1.4 times. The ratio of current assets to current liabilities fell FROM 2.0 to 1.7 to 1. Total shareholders' funds rose from $16,803,383 to 517.550.964. including steady: issued capital. Term liabilities rose $81,732 to $647,670. Working capital fell] $280,585 to $1,898,669. Fixed assets rose $718,820] to $6,513,524. Investments in associated, companies were $257,000 higher at $8,725,446, but other investments fell $34,412 to $935,857.