TNL coping well
j For the first time in many years TNL Group, Ltd, has ’suffered a setback in profits, ■says the managing director ’(Mr G. Butler) in the annual report. The main problem areas for the group were in contracting and some companies ; in the manufacturing division, together with reduced : returns from associated companies, he says. “Positive steps have been taken in each of these areas to improve the over-all ’profitability of the group. “The remaining divisions ■ have not been affected to i the sale extent, and conitinue to make adequate ’profits in the current econ)omic circumstances.” Profitability of the tours ’division had been reduced ’because of increased competition for a declining num’ber of in-bound tourists, he said. “In spite of a downturn in )the number of Australian I tourists into New Zealand Newman’s tour division was 'able to maintain last year's ’numbers, indicating an im- ’ proved share of the market. “The coach-line division had another record year, but the road-user charges began on April 1, and will have a significant effect on the full iyear.” ) All companies in the | freighting division had
’•worked profitably, although,t . margins were reduced. i! Sweeping Government pol- c riicy changes in the last 12 it I months had had important j consequences for the freight- i ( Ping division. !< These included the remov-I ] ; i al of the 65km limit for pro-, -,’duce and the new 150 km |, II limit for general freight, al-r . though the latter had not , had such a significant im-!' i pact for the division com-1, 5 pared with carriers in the 1 ,; I North Island with largej' cities up to 150 km apart. I ; Mr Butler is critical of the ■ , Road-User Charges Act andp - says, while not arguing with ’ 3 The philosophy of “user--1 pays,” it would be gratifying i |if the amounts the group II si pays were spent on the roads j 1! it used rather than on urban i - [ motorways of some of the; -! country’s larger cities. s'l The act has also caused I additional costs in the way ; i the act is levied, and addi-i i tional staff have been em-l 1 ployed to maintain distance! s records. I s Working capital is affect- j - ed because of the need to pay in advance, he saysi The group net profit fell t 16.7 per cent to $2,605,000 n in the year to June 30 on a; total gross revenue up 10.2 111 per cent to $46.4M. I The profit was after proe I viding $343,000 more for d i depreciation at $2,543,000,
but $760,000 less for tax at $379,000. Interest on fixed charges rose $163,000 to; $767,000. Trading expenses increased 11.4 per cent to $23.5M and wages and salaries 14.2 per cent to $11.7M. j ; Shareholders’ funds rose • $4,564,000 to $28.2M, including ordinary capital up >52,678,000 to $11,471,000, ; c a p i t a 1 reserves up i $1,581,000 to $10,367,000 and ! general reserves up $562,000 |to $7,858,000. I The earning rate on average shareholders’ funds fell' Ifiom 18.1 per cent to 9.9 per I cent, and on ordinary capital ;from 34.5 per cent to 19.4 [per cent. i Shareholders’ equity rose from 55.3 per cent to 57.5 per cent. The recommended final dividend of 3.5 c a share ; makes a steady 7c a share 1(14 per cent) for the year on I increased capital. The ordi- ! nary dividend requires SI.6M land is covered 1.4 times. I Working capital rose $5,158,000 to $5,452,000 and the current ratio increased from 1.0 to 1.6 to one. The 50c shares last sold for 81c for a dividend yield of 8.6 per cent and an earnings yield of 12 per cent. The price-earnings ratio was 8.3 and the net asset backing a share 108 c.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19781107.2.162
Bibliographic details
Press, 7 November 1978, Page 26
Word Count
625TNL coping well Press, 7 November 1978, Page 26
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.