P. Impey still doing well

Press, 30 November 1978, Page 21

P. Impey still doing well

PA Auckland; Phillips and Impey, Ltd.! expects a further good per-j formance in the current! year, despite the removal of the stock valuation adjust-, ment. and the continuation of difficult market conditions. the managing-director (Mr S. C. Browning) says in his annual review. The directors anticipate an increase of activity which; might be temporary in dura- ( tion. The longer-term econ-l omic outlook must be con-1 sidered uncertain, they say. j As reported, the group increased net profit $85,510, or 9.8 per cent to $955,614 in! I the year to August 31. The' dividend rate was held at I 17.5 per cent (8.75 c a share). ; ! Mr Browning says that I the year’s performance was|

most satisfactory in the difI ficult economic climate | which adversely affected the (group’s contracting and retailing activities. A stock-reduction programme was carried out during the year, amounting to $587,660, or 12 per cent of opening stock. The company had bought Alexander Clark, Ltd. of Palmerston North, and (opened a new retail store in (Tauranga, and since the bal-!ance-date a further store at (Pukekohe has been acquired, i The subsidiary, Goldex Paints, Ltd, performed well (despite the decrease in new I housing. (I Polycell Products, Ltd. (49 (per cent owned) continues to (improve its local market (penetration. I The glass contracting and | hardware activities were

pruned in the light of the reduced work available. Until the level of activity improved, an adequate profit! contribution in line with I normal company perform- j ance could not be achieved,! the report says.

; Turnover in the last year rose 9.7 per cent to $26.3M. Depreciation required ($53,308 more at $221,152.. I but tax was $144,225 lower; at $489,728. | The dividend requirement! ! was steady at $384,086 while (paid capital, reflecting the. ; issue of shares as part consideration for Alexander (Clark, is $360,000 higher at; $2,554,776.

The earning rate on capi-l tai rose from 39.6 per cent! to 43.5 per cent, but that on shareholders’ funds has eased from 12.7 per cent to, 12.3 per cent.