Commercial Am. Batteries loss $3368 in half-year

Press, 11 May 1977, Page 22

Commercial Am. Batteries loss $3368 in half-year

The directors of Amalga-! mated Batteries, Ltd, sayi that the main reason for an unaudited group net loss of I 53368 in the six months to| February 28, was caused by the price freeze. The freeze prevented the company from increasing itsj price until after the end of I the six months, they say in a half-yearly report. The costs of raw materials used bv the group rose sub-! stantially during the period,

and the company incurred al trading loss of $llO,OOOl from this source. “This has now been reme-i died and accounts for March] show that profits are . once; again being earned. "In addition, the half-j yearly figures included some; very profitable export busi-! ness, which will be repeated! in the second-half of the year.” . The directors emphasise | that there is a substantial] seasonal fluctuation in battery manufacturing, and that; peak sales occur during the winter months which is cov- i ered by the final six months' to August 31. “One further factor that; should improve the profit ini the current six months is 1 the installation of new plant., "It was expected that this I would have been completed

some months ago, but because of delivery delays it has not yet commenced working. “Its installation should improve quality and reduce production costs, as well as show a considerable improvement in the working conditions associated with the industry.” The directors are of the opinion that by the end of the financial year a much improved position should be shown, and therefore have declared the usual (steady) dividend of 5c a share (5 per cent). The profit was achieved on an increase in group sales of 10.8 per cent to $1,815,049, and after providing no taxation compared with $51,996 previously. The interim dividend is payable on June 29.