Speirs div. cut

Press, 14 December 1977, Page 22

Speirs div. cut

M.S.D.-Speirs, Ltd. has cut its interim dividend from 9c a share to 5c a share (5 per cent) after unaudited group net profit fell 65 per cent to $111,448 in the six months to September 30. The company has substantial reserves from which a 9c a share interim dividend could have been paid, but the directors decided to adopt a conservative policy. During the half-year the building industry had its most serious decline for many years. Although the demand for housing has eased the company does not share the Government’s view that the housing-market is presently being adequately serviced, or that the current level rff activity reflects the real need. There is a large and unsatisfied requirement for new housing which has been frustrated, by a shortage of mortgage funds and interest policies which have caused servicing costs to increase beyond the capacity of the average buyer, the directors say. Despite this trading in

building and allied materials has been satisfactory, although profits in this division have fallen 10 per cent, i However, both the land -development and hcftisei building division incurred trading losses because of holding-charges when sales volumes fell more sharply ithan Government preI dictions. As a matter of policy the company writes off all costs involved in holding land for development, developed 'sections, houses under construction, and completed I houses. Group sales fell $7634 to $8,573,405, and the profit Iwas after providing $210,467 I less for tax at $37,049. | The company has coni tinned in its policy of not I accounting Canterbury Tim;ber Products, Ltd, an associate company. The interim dividend is ipayable on Februarv 7, ex dividend January 20. The [shares issued on the conversion of the 1977 convertible notes do not participate lin the dividend, but rank equally with other shares thereafter.