Higher productivity helps Revertex

Press, 5 July 1978, Page 18

Higher productivity helps Revertex

Improved productivity in the manufacturing divisions of Revertex Industries (N.Z.), Ltd, cushioned the impact of the marked downturn in activity in the building industry, said the chairman (Mr W. R. Campbell) in the annual report. Effective control of costs of the group also helped, he said. The improvement in efficiency also extended to marketing, where Revertex now ha-' an increased share of local business. The appointment of an export marketing manager in Sydney substantially increased export sales of resins and emulsions. This extension to marketing strategy also gave the company valuable long-term benefits from the close association with central research and development laboratories of big Australian companies. The board of directors has asked Mr Campbell to reconsider his decision to retire because the downturn in the economy and the recession in the building industry needs greater day-to-day attention of the group’s activities. “Accordingly I have withdrawn my notice of intent to retire and have entered into a contract of service with the board to continue my

executive responsibilities as managing-director of the group,” said Mr Campbell. As reported, group net profit fell 5.9 per cent from last year’s record profit of $487,753 to $459,031, on group turnover which was $90,000 higher at $11.5M. The profit was after providing $6294 more for depreciation at $190,522, but $130,792 less for tax at $207,842, including a taxsaving of $36,000 from the stock valuation adjustment. Interest expenses rose $22,724 to $68,139. A recommended final dividend of 7c a sh?re, making a- unchanged 14c a share (1 • per cent) for the year will be paid on capital increased by a one-for-three bonus issue. The dividend requirement is $162,699, covered 2.8 times by the profit. Shareholders’ funds rose $273,750 to $3,012,272, including ordinary capital up $332,103, to $1,328,192, because of the bonus issue. The earning rate on the funds fell from 17.8 per cent to 15.2 per cent. Working capital rose $166,479 to $1,775,494, but the current ratio was steady at 1.6 to one. The shares last sold for 230 c for a dividend yield of 6.1 per cent and an earnings yield of 17.1 per cent. The price-earnings ratio was 6.0.