Hawkins Holdings confident

Press, 27 August 1977, Page 19

Hawkins Holdings confident

Hawkins Holdings, Ltd. the Hamilton-based construe-, tion group, is confident this (year will produce a result for it comparable with that of similarly situated companies while not creating any new records, the chairman (Mr T. S. Robinson) said at the annual meeting. The high cost of borrowling was a contributing fac]tor in producing zero growth I (in many companies, he said. I “In the building industry. I we are affected by shortage of funds for our own activities and also by shortage of funds in the hands of those with whom we would like to do business. “There has been a dramatic change since March 31 in most manufacturing and building companies.” I Mr Robinson repeated the' concern he had expressed in the annual report that when the tide did turn for the bet-1 ter, the company would be! without* the trained staff needed then and the necessary planning to rapidly provide the requirements for industry development. He drew shareholders’ at-: tention to the fact that this]

year's dividend. S.sc (17 per cent), was covered 3.8 times. He said it was an important figure because it was from the retained profit that the company would grow. He said retained profits jcould well support a higher rate of dividend and the directors would consider this (when studying the halfI yearly accounts to Septem--ber 30. Mr Robinson also referred [to the position of preference shareholders, in the light of the fixed return on their investment, at the rate of 6.5 per cent, taxable. He noted their return was relatively; reduced when compared with the ordinary dividend and. accordingly, the value 1 ,of their capital investment was reducing. ! The preference share--holding is $lOO,OOO. 2.7 per; cent of shareholders’ funds. Mr Robinson said the : directors were giving serious consideration to this and it] !could well be that a scheme.! (whereby the position of preference shareholders could be prevented from fur(titer deterioration, would be brought forward.