Fountain Corp. aim to improve profit

Press, 26 August 1977, Page 10

Fountain Corp. aim to improve profit

I PA Auckland, ' The chairman of Fountain) (Corporation, Ltd, (Mr B. L. Macedo), told shareholders ’ at the annual meeting that the aim in the present year was simply to improve net profit. “We believe the measures we are taking now, given reasonable trading, will achieve this,” he said. “The group can expect some increase in turnover and profit. However, there is no denying that for the rest of this financial year growth jin real terms will be very difficult.” j Mr Macedo said in the; ’four months to July 31, [ sales were up 19 per cent on! the comparable 1976 period,! while value of manufac-'

11 taring output had risen 29 i(per cent. He warned, however, that ; these increases have been achieved only by incurring ■ additional overheads in an . economy which placed considerable pressure on profit ; margins. i All subsidiary companies, I with the exception of Fountain Furniture, Ltd, which : was to be closed and the ■ plant sold, were trading , profitably. The meeting approved the i recommended 15c a share 1(15 per cent) dividend and a I special resolution to allow j! future dividends to be paid 'from tax-free sources. i! The company will begin Jthe paj'ment of interim divi- • 'dends this year.