Smith Biolab pleased with new business

Press, 15 July 1978, Page 16

Smith Biolab pleased with new business

PA Auckland Smith Biolab Ltd., has made a major diversification over the last six months into the veterinary field, which has produced pleasing results, says the chairman annual review.

As reported. Smith Biolab; enjoyed buoyant trading in; I the year to January 31,1 'when net profit rose 56 per cent to $556,377. The dividend rate will be raised from 14 per cent to 15 per cent ($7.5c a share) requiring 5140.415. This payment is the equivalent of a 17.5 per cent dividend on capital before the one-for-six bonus issue in November. Sales rose 32 per cent to a record $8,936,986, including a 274 per cent increase in exports, which saved tax of $35,402. Medical and scientific sales increased, but pharmacy sales weakened in a generally less buoyant consumer economy.

Downing Plastic Industries, Ltd, achieved record sales and profits, and further profitable growth of this company is expected. Biological Laboratories, Ltd, improved earnings, with the assistance of a number of Government contracts. Graphic Packaging earned a lower profit, in spite of in-

, creased sales, but this subsidiary was assisted by increased exports. A number of export contracts kept Australasian Chemical Company, Ltd. busy, and a reasonable profit I was earned.

The profit was after tax $20,653 higher at $297,671 (the stock benefit was '550,887) and depreciation ! $25,799 higher at $188,901. The earning rate on average shareholders’ funds rose from 17.2 per cent to 22.2 per cent. Total shareholders’ funds rose $756,963 to $2,977,415. Term liabilities were reduced from $283,000 to $222,000.