Bell trying to adjust to lower TV demand

Press, 30 August 1977, Page 27

Bell trying to adjust to lower TV demand

PA Auckland Bell Radio Television Holdings, Ltd, expects a substantial drop in sales of colour television sets this year. The company therefore must trim production costs to meet lower production levels and sales the chairman (Mr A. P. S. Bell) says. In his review for the year to March 31 colour television seemed to have been one of the products singled out by the Government for special attention to reduce consumer spending. On top of this, the industry has suffered rising oversieas prices for components and latterly an unrealistic pricing formula to control prices on a falling market, Mr Bell says. This year, the company would market a number of new products, particularly communications equipment.

Steps are being taken to ensure the utmost efficiency' in all the group’s activities: to expand and promote! products.

Under present tough trading conditions the directors were unable to state cate-

gorically that the higher 20 per cent dividend rate would be maintained on capital increased by the proposed one-for-10 bonus issue, Mr Bell says. The group net profit for the year under review fell )19.6 per cent at $549,280. j after group turnover was 4.9 'per cent higher. | The profit was after providing $226,148 more for (depreciation at $825,294, but $148,221 less for taxation at $365,671. The 20 per cent dividend (2.5 per cent higher) required $21,382 more than at $171,052. The earning rate on ordinary capital dropped from '79.8 per cent to 64.2 per (cent and on average shareholders’ funds were down i from 19.3 per cent to 13.5

> per cent. I Shareholders funds were .I $726,057 higher at : I $4,444,953, including steady (ordinary capital of $855,259.