Ajax trades steadily

Press, 3 August 1976, Page 24

Ajax trades steadily

PA Wellington I Ajax G.K.N.. Ltd’s, trading I in the first three months of the current year had seen a I reasonable continuation of the previous year’s steady level of demand said the chairman of the Lower Huttbaset: bolt nut and screws manufacturer (Mr P. J. Kincaid) at the annual meeting. The company was planning to conti: '. the capital investment programme that has been under way in recent years, he said. During the last three years capital expenditure has totalled S2M, and the chairman said plans were at present under consideration for further expenditure of the vicinity of the total amount spent in the 1975-76 financial year, $460,000 of which was mainly on plant and equipment. The company achieved a

group net profit of $733,369, which would have been greater than the 1974-75 record earning of $788,766, had not $132,000 been apipropriated from the profit; ito an asset replacement re-1 serve. I This was the first time [such a reserve had been [created, and it would assist [with future plant replacement, Mr Kincaid said. 1 “It is realised tnat this [step is an interim one only, [and does not fully p-ovide for the effects of inflation on the ability to replace and update plant and equipment. “Nor do the accounts show the effects of inflation on the company as a whole. However, it was felt that some concrete step must be taken, particularly in an industry such as Ajax which is highly capital intensive,” he says. He urged the authorities

and other bodies involved, to tackle with haste, the vexing problem surrounding the need for a recognised form of account presentation to allow for the effect of inflation.

I “It is fully realised that to achieve this to the satisfaction of all parties concerned is a most difficult task, and that an essential ingredient to a satisfactory solution is the need for our taxation and price control authorities to also accept a new format of accounting procedures in lieu of outdated historical sets of accounts.”

After the meeting, Mr Kincaid said, he and his directors had not yet had the chance to consider all the implications of the various provisions for industry contained in the Prime Minister’s (Mr Muldoon) Budget, but he was happy with the continuation of export rebates.