Marac profit steady

Press, Volume CXVI, Issue 34146, 6 May 1976, Page 20

Marac profit steady

(yen' Zealand Press Association > AUCKLAND. An increase in profits for the last six months of its financial year to March 31 resulted in Marac Holdings, Ltd, earning an almost steady audited net profit of §1,711,000 for the year

Ln the previous year net earnings were $1,705,000. The group’s net profit for the six months to September 30 was down 11.8 per cent at $791,000. . The annual dividend rate is steady at 15 per cent (15c a share); the directors recommend a 74 per cent final dividend, payable July 6, ex dividend June 22. Provisions for the fluctuation in the valuation of overseas borrowings, arising from variations in exchange rates, has been covered by the group’s past policy of a transfer from the appropriation account, but the prelimlinary report does not indicate the amount involved. New finance offices had been established in Nelson, Tauranga. and Palmerston North since December. For the first time in some years, Marac. and the rest ol the finance industry, entered

,a new-year free of the distorting effects of previous i interest rate controls, the I chairman (Mr J. C. Fletcher) says. Interest rates in this initial period of freedom were; .volatile, but there was still! [welcome evidence of some [gradual settling-down of borrowing rates, which was essential for both the industry and the economy. [ The group’s funds-flow isteadily improved during the [last half-year, and this [enabled the group to get into a well-balanced position. [ With the new offices, and the most satisfactory result, in view of the general difficulties in the national economy during the. first [part of the financial year, [the group, in spite of some uncertainties ahead in the economy, faced the current!

year with confidence, Mr Fletcher says. The profit represented an earning rate of 28.5 per cent on paid capital compared with 28.9 per cent previously. The return on aver;age shareholders’ funds was '15.4 per cent compared with 15.3 per cent.