Wallace bonus refused

Press, 8 July 1976, Page 17

Wallace bonus refused

PA Auckland D. McL. Wallace, Ltd, Auckland engineering group and merchant, raised unaudited group net profit 31.4 per cent to $365,076 on an equity accounting basis in the year to April 30, but it has been refused permission to make a bonus issue on the same terms as those made by the group in the three previous years, the directors say in a preliminary report.

They applied on June 21 to the Company Distributions Appeal Committee to make an immediate one-for-10 bonus issue to shareholders, as had been done in each of the three previous years. This application was turned down.

The profit was after providing $48,213 more for tax at $129,990, and $10,909 more for depreciation at $147,523.

It represented an earning rate of 44.7 per cent on capital, compared with 32.7 per cent on last year’s postbonus capital. The company made an additional capital profit of 638,859 during the year, and

had increased reserves by writing up its Penrose property by $212,650, the directors say. The 6 per cent final dividend is payable on September 2 and shares will be marked ex dividend on August. 25. A recommended final dividend of 3c a share (6 per cent), payable September 2, ex dividend August 25, makes a steady annual rate of 5.5 c a share (11 per cent).

It was also announced that D. McL. Wallace has won a $66,000 order from Tanzania for milking machines.

The managing director (Mr D. McL. Wallace) said that he had just received a letter from the Tanzanian Livestock Development Authority accepting his company’s tender. He was now awaiting shipment instructions.

Approval from the Reserve Bank had been given to double his company’s capital in the subsidiary, Advanced Industries, Ltd, which it established recently at Tralee, Ireland, with an Irish partner, who approached the group. It may eventually n* r.’ et throughout the European Economic Community the machines it makes from dies, patterns, and moulds, that are made and exported from this country, he said.