‘Some hard months still ahead’ for U.P.P.

Press, 28 August 1978, Page 14

‘Some hard months still ahead’ for U.P.P.

PA Wellington The directors of United Publishing and Printing Co.,

Ltd, expect a “reasonably satisfactory” return from the newspaper division over the coming months, the chairman and managing, director (Mr R. F. Smith) says in the annual report. “Unfortunately the same cannot be said for the commercial printing divisions, and some hard trading months still lie ahead,” he said.

The main source of the group’s revenue was the newspaper division. “Although there had been a setback in volume, now that price increases have been allowed the current situation is reasonably buoyant,” Mr Smith said. The' stimulation from the Budget and the general wage order would assist newspaper profitability, he said. The report confirms that the company’s net profit for the year to March 31 rose 6.4 per cent to $900,415.

Within the next 18 months expenditure on plant “to maintain its quality and efficiency” is expected to be

about $900,000 “which even allowing for inflation is a large amount for a company of this . size,” the report says. The directors are recommending a final dividend of 14 per cent, making 18 per cent for the year, compared with 16 per cent last year; the profit covers the dividend 3.6 times.

The annual meeting will be held in Wanganui on September 5.

The profit was after providing $5919 more for depreciation at $222,162, but the tax liability was reduced $29,159 to $656,841 — of which $lB,BOO came from the trading stock valuation allowance.

The earning rate on capital rose from 61.8 to 65.8 per cent. All subsidiaries contributed subtantially to group profit but one newspaper suffered undue delay in increasing advertising rates, and printing profitability was affected at year’s end by the recession.