Bad period for A.B. Con.

Press, 15 April 1978, Page 18

Bad period for A.B. Con.

A.B. Consolidated Holding, Ltd, has reported an unaudited group net loss of $9450 for the six months to I December 31. The total market for biscuits, confectionery, and j snack foods has been under j severe pressure during the ’ i six months under review,! the directors say in the halfyearly report. Although the major divisions involving the biscuits, confectionery, and snacks traded profitably, the declining market volume reduced such profits to a nominal level only. Two new group companies which have good profit potential. Big Apple Products, Ltd, and Aulsebrooks Allied Mills, Ltd, incurred losses! through set-up and promotional expenditure, particularly in respect of the introduction of Bulmers Cider. These losses are not expected to continue at this level beyond the present trading year. The result, after writing off losses attributable to these companies of $74,000 ($9450) is before allowance for currency fluctuations — which caused an extra-

[ordinary loss of $333,000. i Steps are being taken dur-] ]ing the current period in a I effort to eliminate future , currency fluctuations. Capital profits for the period I were $12,000: depreciation i provided for the' six months ■was $311,000, the directors say.

No provision for tax has been necessary. Sales for the six months period were $14,503,000, of which exports contributed $902,300. Comparative figures are not available owing to a change of balance date last year — from March 31 to June 30.

Steps the directors are taking to improve trading results of the company must essentially be of a medium term nature, and as such the results of this action cannot beexpected to be reflected in the full result for the trading year to June 30, they say The total market situation is still depressed, and with further development expenditure and plant re-struc-turing which will be necessary for future trading benefits, the directors do not expect an early return to rea-

isonable profitability. | In view of these factors, ' the directors do not consider ! it responsible to declare an j interim dividend on ordinary i capital; an interim diviidend of 5.5 c a share (2.75 | per cent) on preference capi- ’ tai has been declared and : will be- paid on April 26; the ; preference share register ■ will be closed from noon on i April 25 to April 26 inclusive. The dividend will be! | paid from realised capital profits and hence be tax-free in the hands of shareholders; ex dividend on April 20.

METALS

London, April 13. Buyer Seller £ £

a ton a ton Copper .. .. 687.00 687.50 Tin .. 5825.00 5830.00 Zinc .. 294.00 295.00 Lead 311.00 311.25 Silver per fine oz 281 3p, forward 286.3p. Gold per fine oz 5US176.60.