Profit fall for N.Z. News

Press, 27 May 1978, Page 19

Profit fall for N.Z. News

The audited group net profit of N.Z. News, Ltd, fell I 3,8 per cent to $2,455,000 in the year to March 31, the i directors say in a preliminary | report. 1 The contribution of the i daily newspapers declined 27 I per cent mainly because of a further substantial increase 1 in the cost of newsprint, and 1 considerable rises in wages and other costs, they say.

, Research and development | was especially heavy at the “Auckland Star” where the process of changing to the new technology has involved much expense while having to run parallel operations in both the old and new methods of printing. The change-over should be completed later this year, they say. “Other publications and activities in the group main-

tained satisfactory contributions to profit — which was assisted by taking full advantage of tax credits on increased exports of commercial printing and other sales.

“Profits from the acquisitions of the ÜBD Group in August, 1977, and the Reynolds Film Processing Company, in September, 1977, have been brought into account on those dates,” they say. Group sales increased S7.IM, or 19.4 per cent to $43,833,000. The profit was after providing $341,000 more for

depreciation at $1,442,000, but $842,000 less for tax at $1,060,000. The 5 per cent stock adjustment provided a tax saving of $141,354. The return on average shareholders’ funds, increased by an addition of paid-up capital of $797,000, declined from 14.9 per cent to 12.9 per cent. A recommended final dividend of 9c a share, together with the increased

interim dividend of 7c a share, raises the annual rate from 15c a share to 16c a share (16 per cent). The dividend is payable on July 13, ex dividend on June 23.