Allied Group expects steady growth

Press, 27 August 1977, Page 19

Allied Group expects steady growth

: Allied Group, Ltd, is not! -anticipating spectacular re-i (suits this year but is plan-( ] ning for steady growth, the managing director (Mr A. W. Mason), says in the annual report. The reason given by' Mr Mason is that changes in the economic climate have (markedly affected some of the group’s activities. Although, as reported, taxpaid profit for the year to March 31 was $210,793, a 5 (per cent improvement on (1975-76, the directors have I recommended the full profit (be retained and added to ] shareholders’ funds. No dividend will be paid. I Mr Mason says that last] (year trading was difficult, but I all companies in the group (traded profitably with the! .exception of the new food] I venture. Thatched Cottage ] (Industries, Ltd. Allied owns i jtwo-thirds of this company,; (which began trading on Feb-i ruary 1. He says Allied Finance and ] ] Investments, Ltd, is planning i i for consolidation, rather than ] [ expansion, until the econo-1 mic climate )s more conduc-1 ive to fund raising. This company placed a - debenture issue with the' public in mid-1976, he recalls,] and says the results for the | five months following were, very' pleasing. The company] enjoyed a substantial growth! in funds. “From the beginning of 1977,” Mr Mason says, “the investment climate changed markedly', and fund raising has been difficult for all finance companies. ‘]The lack of liquidity in

I the economy generally, with] | more aggressive fund raising ! ;by trading banks, has re-1 duced the flow of funds into the group.” Discussing trading by Auckland Motors, Ltd. he says 1977 has been steady for both new and used vehicles. Late in 1976 new car sales rose sharply in anticipation of price rises following the lifting of the price freeze and the November devaluation. New car sales are now being assisted by some excellent new models. Late in 1977, stocks of Mitsubishi Celestes and! Chrysler Alpines are ex-! peered. ! On the subject of spare parts, Mr Mason says the ] company sells these at prices ! decided by the distributor (and the mark-up is less than (sufficient to finance the : increasing cost.