Ceramco sales higher

Press, 21 August 1976, Page 17

Ceramco sales higher

PA Auckland: The profits of Ceramco, Ltd, in the three month to; June 30 are in line with the group’s performance in the corresponding period last year, said the chairman (Mr j. C. Fair) at the annual meeting. Trading in the first quarter had been satisfactory, with 15 per cent higher: sales, he said. However, some sectors of; the group were experiencing; a downturn in New Zealand. | This applied in particular! to construction and commercial building. Other: activities continued at a reasonable level, both locally! and overseas. The joint-venture finance company, Auric Corporation, Ltd. was devel-! oping satisfactorily, and it! would be making an initial public debenture issue in the: near future, he said.

Shareholders of the part-i mer companies. Ceramco and Motor Specialities Industries,; Ltd, would be given the op-; portunity of subscribing to the issue, vyhich, according to Mr Fair, should be an attractive investment. As reported in the annual : review, the contribution of; the overseas subsidiaries; now represented about a quarter of net profits. These activities formed an; : important part of the overall! ■activities of the group, and: !should help to counter any! !s h o r t-t erm economic; ’difficulties on the domestic! market, Mr Fair said. The unrealised exchange; : losses in respect of overseas; borrowings of about iSUSI.OM had been more : i han offset by exchange gains in the accounts of ■!overseas subsidiaries. The group accounts in-; eluded a net gain on ex-1 : change at balance date on ■ March . 31. This showed the

importance of overseas sub-; sidiaries, which normally) provided some protection against adverse exchange movements in the New Zea-, ’land dollar, he said. As announced, group net profit rose 33.6 per cent to a record $2,083,366 in the year '[to March 31. i After the annual‘meeting, i an extraordinary meeting approved the directors proposals for an issue of specified ■ preference shares. i The issue was primarily {not intended to be an equity Tissue,'but shareholders were j given the opportunity to inIvest in what could be re-; ygarded as a loan to the company at a satisfactory interest rate, Mr Fair said. ■ In addition, there was a • minimum guaranteed capital ’{gain of 10 per cent over five { years coupled with the projection of a cash redemption •lif desired, and the prospect i of a more substantial capital ■gain.