A.M.I. market contracting

Press, 4 October 1977, Page 46

A.M.I. market contracting

PA Auckland "Atlas Majestic Industries,' l td, would have to consolidate over the next two or three years, because It would be three to five years before people would be able to buy what they, wanted again,” said the chairman (Mr C. A. Pearson) at the annual meeting.

"Three years ago 920,000 stoves, refrigerators, and television receivers, and other consumer durables, had been sold by New Zealand firms. “This year the industry will be lucky to sell 600,000 in total,” he said. However, Mr Pearson pointed out that A.M.I. had three other sound sectors in servicing, property, and food.

The group had won an $lOO,OOO order from Australia, after an order worth $300,000, he said. Written questions from shareholders were read to the meeting along with replies, and copies of ques-

lions ana answers wouiu oei sent to shareholders, said Mr Pearson. Some of the points, especially about the presentation of the accounts, would be acted on, be said. To question, Mr Pearson said that the company would “break even” in the halfyear to September 30, as stated in the annual report, but. he would not be drawn further.

The final profit would he similar to that for the year to March 31: $946,634, including extraordinary items of $42,000. A shareholder said: "rhe company said in a letter that the issue was fully subscribed. but 369,000 shares had to be taken by the underwriters.” Amid general argument. Mr Pearson replied: "The underwriters bought only what the shareholders did not want.” Mr J. Roy, the groups financial director, said that A.M.I. wished to allocate the extra 369,000 shares to shareholders. However, the ! time to do this expired, and i the underwriters wanted to take up the shares them-l selves, which they were en-| titled to do under their con-! tract.

The meeting agreed to allow dividends to be paid tax-free, from the share premium account, subject to Supreme Court approval.