Motor Holdings incurs loss

Press, 24 June 1978, Page 18

Motor Holdings incurs loss

Motor Holdings, Ltd, is cutting, its final dividend from 4c a share to 2c a share after incurring a group net loss on an equity basis of $640,157 in the year to March 31. This compares with a profit of $1,411,662 in the previous corresponding period. Turnover fell 26.2 per cent to $25.6M, and the pre-tax loss was $769,364, compared with a profit of $2,265,803 previously. There was a tax credit of $9850, compared with a provision of $1,017,634 last year. The result is after writing an additional $429,000 off stocks during the financial year and incurring unusual expenses in excess of $lOO,OOO in rationalising assembly operations necessitated by reduced demand because

of economic conditions, the directors say in a preliminary report.

“Since the close of the financial year we have substantially reduced stock with a corresponding improvement in liquidity-

“Having regard to the improved liquidity and the dividend coverage in past years the directors are recommending a final dividend of 2c a share making an annual total of 5.5 c a share (11 per cent) compared with a total dividend of 7.5 c a share (15 per cent) last year.” Future tax benefits have accrued to the company arising from the current year’s loss. The stock adjustment tax allowance and export allowances total about $625,000. The dividend is payable on August 10.