D. McL. Wallace doubles exports in 12 months

Press, 24 August 1977, Page 23

D. McL. Wallace doubles exports in 12 months

Commercial

D. McL. Wallace, Ltd, has maintained last year’s buoyancy in exports, with sales 100 per cent higher than in the previous 12 months to April 30, and 35 per cent above the peak period of 1975.

An increasing volume of sales will be generated in Australia, especially with the establishment of a jointly-owned company in Sydney, says the chairman (Mr D. McL. Wallace). Group net profit on an equity basis was $143,084 or 38.7 per cent higher at $512,690, as previously reported. “The company has been able to take advantage of favourable business opportunities as they have occurred, despite tight liquidity,” he says.

A substantial part of the increase in exports came from existing customers who ordered more confidently than in the previous year.

The company is disappointed that progress with the compressed natural gas project for motor vehicles has been slower than hoped, but the directors still see! the sale of this equipment as being an important activity for the future. “As natural gas becomes more plentiful and readily available it will be the logical fuel to use,” they say. “All vehicles converted in New Zealand with the company’s equipment are running equally as well, or better than on petrol.” In the near future, the company expects to offer compressed natural gas for use as a fuel for cooking; and heating appliances in pleasure craft. The associate companies, Diversey Wallace, Ltd, and Diversey Wallace Holdings, Ltd, had a successful year and several new warehousing facilities were estab-1 lished throughout New Zea- I land.

in Ireland, Advanced Industries, Ltd, completed its first full year of trading and results were encouraging. A modest profit was re- ' turned and the company is now becoming well established as a manufacturer of milking machines, with growing prospects in Ireland and other EEC markets. Trading had not commenced at balance date of D. McL. Wallace Proprietary, Ltd, in Australia. Profit was achieved on net sales which were 29.4 per cent higher at $6,218,215. The steady 11 per cent; 5.5 c a share dividend re-j quires $22,620 more at $111,276. Shares issued in; the current one-for-ten bonus rank for the. final 6 per cent dividend. Earning rate on ordinary capital is up from 45.9 per cent to 50.7 per cent while that on average shareholders’ funds improves) from 15.8 per cent to 17.41 p :• cent.