Set-back for AB Consotl.

Press, 26 August 1977, Page 10

Set-back for AB Consotl.

The group net profit of A. B. Consolidated Holdings, Ltd, for the 15 months to ! June 30 was lower than the l interim result announced i earlier for the 12-month period to March 31. The latest result isj §541,767, compared with the; 1 12-monthly profit of $509,000; announced in June. : However, in this account-! ling period $227,372 extraI ordinary items are being) (deducted from trading! (profits, leaving a group net) profit of $314,395. The group net profit for the year toj March 31, 1976, was) $106,551. Previously, extraordinary I items — mainly factory relocation costs and exchange losses — of $357,251 were charged against retained earnings. The company has changed its balance date from March 3i to June 30. The latest result is arrived: at after providing $116,233i less for interest charges at | $458,659. No provision is | necessary for tax. The provision for depreciation, at $745,093, is $324,697 higher than last year. The directors say in their preliminary report that this reflects a conversion, for the full period, to the straight-line depreciation method which has increased the amount for the current year by $105,000 over that which would have been written off under the previous D. V.-system. The directors say that the ! result “. . . represents a net) reduction from the interim! results for the 12 months to June 30, 1977 but as pointed; out in the announcement of unaudited profit for that period, the following three months normally suffer a seasonal downturn which was accentuated this year by a substantial retail price increase necessitated by ab-

. normal raw material price.’ , increases suffered during the; previous six months. ■ “This temporary set-back in sales has since been arrested and sales levels are I now back on target for the i ;! current year,” they say. j i “Net realised capital | ■ profits for the vear total ,$672,556 ($765,368) of which i ($539,705 ($662,970' is required to offset earlier re- | valuation. | “Turnover for the 15 j month period at $29.5M was up 25.2 per cent on the pre-! ,|vious year, with new acqui- , I sitions accounting for 7.6 (i per cent. Export sales in-L

■ creased 156 per cent, and (New Zealand ' food sales increased 24 per cent. Because of the reorganisation of the Auckland flour milling, flour (sales were down 73 per cent on last year. j The directors are recommending to the annual general meeting a final dividend of 1.25 c (2| per cent) on qualifying ordinary shares and 2.75 c (1 3/8 per cent} :on preference shares. All dividends will be paid from realised capital profits. ; The dividends, if approved I by shareholders, will be payable on September 30; ex ; dividend September 22.