N.Z. News pleased with new equipment

Press, 23 June 1978, Page 11

N.Z. News pleased with new equipment

PA Auckland To cope with economic difficulties, particularly since December, New Zealand News, Ltd. has taken stringent economy measures, and adopted new technology, the managing director (Mr N. P. Webber) say in the report on the year to March 31. The fruits of computerised photo-setting, and new methods of printing were already seen at Taranaki Newspapers, and substantial progress had been made at the “Auckland Star,” which would be converted later this year. “Planning for conversion in Christchurch was well advanced,” he says. New equipment had enabled diversification into printing. This was of special assistance in helping the new subsidiary, Universal Business Directories, to produce efficiently its many trade directories. The acquisitions of U.B.D. and of the film processing division of Reynolds T.V. strengthen the group through diversification, but fall within the aim of specialising in the field of communications, Mr Webber says. Overseas contracts won by Comprint, the commercial printing division, in competition with printers in .Singapore and Hong Kong are worth several million dollars. Comprint also prints several leading Australian magazines.

The company’s major magazines all made pleasing progress. However, the company was greatly concerned about the unfair competition provided by the New Zealand “Listener,” a State corporation magazine which did not have to pay dividends, had not paid tax, and had a fiercely guarded monopoly on an important section of news — advance television and radio programmes, Mr Webber says. “It is especially galling that companies, such as ours have to make profits in i order to pay taxes, which I are used to subsidise our I State-owned opposition,” he [says. I Since January, situations vacant advertising in the “Auckland Star,” and “Christchurch Star” had fallen 60 per cent. This, combined with higher costs, caused the profit contribution of the daily newspapers to drop 27 per cent. The new building far the “Auckland Star” was out on tender. The estimated cost of S9M was likely to be reduced to between S2M and S3M by disposal of surplus properties, and savings, and it was expected that only limited bridging finance would be needed. As announced the group’s net profit eased $98,000, or 3.8 per cent, to $2,455,000 in the year to March 31. The profit was earned on revenue 19.4 per cent higher at $43.8M and was after providing $341,000 more for depreciation of $1,442,000,

but $842,000 less for tax of $1,060,000. Tax reflected the stock re’ lief of $141,354 and export incentives. The earning rate on- shareholders’ funds fell from 14.9 per cent to 12.9 per cent, and that on capital from 32.8 per cent to 28.6 per cent. The annual dividend, raised from 15 per cent to 16 per cent requires $1,373,000. Shareholders’ funds rose $2,414,000 to $20,255,000 including capital increased $797,000 to $8,579,000. Term liabilities increased $48,000 to $3,888,000.