Slow improvement for MSD-Speirs

Press, 15 August 1978, Page 21

Slow improvement for MSD-Speirs

PA Wellington MSD.-Speirs, Ltd, timber,; hardware and building group, does not expect any) immediate return to former, profit levels as long as the i Government’s present hous-) ing policy continues, says; the chairmar (Mr R. N.| Speirs) in his annual review. )( However, he expects a gradual improvement “as we) adjust to our position in the i < land and house building) spheres.” As reported, in the year to! March 31, the group’s net; profit dropped 80.6 per cent;, from $546,521 to $131,228) after sales to customers fell i 10.0 per cent to $16.3M. I The ordinary dividend has i been reduced from 18 per cent to 10 per cent (10c a I share) requiring $211,044 ; ($352,880 in 1977) which i was covered 0.6 times (1.9 times) by the profit. Shareholders’ funds in-j; creased from $6,995,354 toll $7,038,801. and the earning l :

rate was 1.9 per cent, compared with 9.4 per cent in 1977. At balance date, the ordinary shares had a net asset backing of $2.78 ($3.19). As in the previous year, the auditors have qualified ; their report in relation to ; the company’s interest in Canterbury Timber Products, I Ltd. MSD-Speirs, holds 22 per; cent of the C.T.P. shares. ; But the directors say that: because the company can! i not significantly influence ) the policies of C.T.P.. they I consider that the investment need not be dealt with on an equity-accounting basis. The auditors say that because two MSD-Speirs ’ directors are on the C.T.P.! board, and because of the substantial shareholding interest, MSD-Speirs is in a position to exercise significant influence over C.T.P.. and the investment should be dealt with in terms of standard accounting practice.