B.M.I. recovery continuing

Press, 17 September 1976, Page 16

B.M.I. recovery continuing

Blue Metal Industries, Ltd, increased group operating profit 22.9 per cent to $5.9M in the last June year. This appears to be a good trading result in the light of the 13.9 per cent rise in group sales to $134.1M. However, pre-tax profit rose only 4.4 per cent from $6.1 M to $6.4M. This included a 16 per cent increase in investment income, mainly from Interstate, which was the directors’ first assault on their overdependence on N.S.W. But it was the 62.2 per cent drop in tax which enabled BMI to continue its climb out of the 1974 trough. The directors were quick to take advantage of investment allowances, and spent several million dollars reequipping their crushing plant and transport fleet.

This action reduced tax from SI.3M to $503,000 on

the increased profit. Without the two moves BMl’s profit would have fallen below last year’s level and the recovery from the low point of S3.BM in 1974 would have stopped. In the second half profits were down 21 per cent on the corresponding half of last year, and the directors said most group activities had operated at lower levels than last year. The group’s timber activities were the most severely affected by competitive pricecutting, although improved efficiency in the brick and tile production offset some of the adverse market conditions.

The restructuring of the pre-cast concrete operations in the group also increased productivity, and EPM Concrete Pty, Ltd, ended the year in the black. Dividend was steady at 7c a share.