W. Horton to expand profitable division

Press, 24 June 1978, Page 19

W. Horton to expand profitable division

PA Auckland; The printing complex of; 'Wilson and Horton. Ltd. publisher of the ‘ New Zea land Herald,” will have to! be expanded, the chairman i of the company (Mr S. C. I Hay) says in his annual reiview. The site, which is now of! I eight acres, will be used for; the expansion of newsprint storage capacity, and to proIvide space for the growing. Webprint division, Mr Hay i says. Retail advertising was; (again at record levels, national advertising was also; (up. and classified advertising; !slightly down in volume. Sales and profits in the Webprint division were at record levels, which has become a significant profit source. The property was acquired in exchange for an undeve-i loped 20-acre Takanini site. The company’s secondhighest net trading profit of $2,179,720 in the year to: March 31 is seen by Mr Hay| to reflect the strength of the company at a time of difficulty for the printing: and publishing industry. '

“One of the most difficult, tasks has been to contain; the financial pressures! created by very rapidly ris-; ing costs, at a time when: business and profit growth; in our industry, as else-: (where, have been slowed,”; Mr Hay says. There has been a reduc-l tion in staff, and in some] areas significant savings; have been achieved by I changes in procedures. The! introduction of new methods; has also increased some production. The financing of newsprint; stocks, and the need to! (make more provisions for) debtors, together with some necessary capital investment,: ’required 82.4 M. The company refinanced; ;SIM of debenture stock.! “While today’s higher inter-1 est levels add an extra cost to debenture financing the | company is pleased to have assured availability of funds at a time of yet unrelieved inflation,” Mr Hay says. Some export tax incentives were achieved by the company, but the company primarily serves the : home market, and either | subsitutes for previous im-|;

: i ports or provides services, i for exporters. The group net profit of; •! 82,179,720 was 3.82 per cent lidown on the previous year 11 after turnover was 8.25 per, (cent higher at 835.2 M. ' The profit is after providj ing $64,020 less for depreciation of $845,468 and $476,896 less for tax of $1,359,794. The total recommended: :!dividend is 2c higher at 17cj ~a share (17 per cent) and it, requires $789,918 ($696,987). IA final dividend .of I.oc a; [share is,recommended. The earning rate on aver-: ,age shareholders’s funds fell! I from 15.0 per. cent to 13.0 per cent. Shareholders’ funds: rose from $16,036,961 to; [817,587,967, including steady (capital of $4,646,578. Term liabilities rose from. $3,411,242 to $4,025,446. Net current assets rose! SI.7M to $6.4M, and the current ratio rose from 109 to 2.5 to 1. At 245 c the ordinary shares had a dividend yield; of 6.9 per cent, and an earn-' ings yield of 19.0 per cent. [The price-earnings ratio was; 15.2.