Spedding acquisitions help maintain results

Press, 31 August 1977, Page 37

Spedding acquisitions help maintain results

PA Auckland Spedding Consolidated, Ltd, manufacturer and merchant is experiencing buoyant trading conditions, the chairman, (Mr F. H. Reynolds) says in his review for the year to March 31.

In the latest year, in spite of higher operating costs, the company was able to increase net profit $19,763 or 4.8 per cent to $428,006. The recent acquisition of Potter Industries, Ltd, and International Foods (1976), Ltd, would compensate for problems in other areas this year, Mr Reynolds says. The merchandise department enjoyed a record turnover in the year under review, but there were problems in the supply of some products, which could also have an adverse effect in the current year. The results of the Marine Department had been reduced by increased sales tax.

The profit was after providing $10,749 more for depreciation at $79,330, and $20,698 more for taxation at $343,927. The steady 20 per cent dividend on higher capital required $44,657 more at $167,830.

The earning rate on ordinary capital was down from 66.3 per cent to 51.0 per cent, and that on average

shareholders’ funds fell from 24.4 per cent to 18.4 per cent. As announced, the company will make a one-for-10 bonus issue, and a one-for-four specified preferred issue closes next week.