Odlins’ trading at high level

Press, 1 December 1978, Page 14

Odlins’ trading at high level

Trading since September’ 30, has been at a high level) with group sales substantial-! ly above last year, the chairman of Odlins, Ltd (Mr H. Hill) said in the halfyearly report to shareholders. “If we can maintain the present high comparative level of sales during the remaining months of the current financial year the directors envisage the results for the full year being most satisfactory,” Mr Hill said.

The results of trading for the six months to September 30 include adjustments for equity accounting, the effects of which would not be significant. The unaudited net trading profit rose 9.5 per cent to $1,767,264, after sales revenue increased 3.0 per cent to $54.8M. Capital profits of $136,594 were also realised.

“Indications are that our share of the local market increased and we also expanded our export activities with encouraging results." Mr Hill says.

“All divisions traded profitably, and expenditure generally was well controlled, but we faced unavoidable increases in salaries

and wages and other operating expenses. Unfortunately staff reductions were necessary in some areas, but these were kept to a minimum,” he says. The group has been suc-i cessful in increasing exports: of sawn timber, logs, wood: chips, and Zip manufactured: products, in some instances to new markets. “As a result of overseas visits by. sales executives the percentage of export sales to total sales is steadily increasing, and we are optimistic that this will continue,” Mr Hill says. The profit was after providing $369,163 less for tax at $774,100. No allowance was made in the half-year figures for 1977 for the taxation benefit which subsequently accrued in respect of this trading stock valuation adjustment, because the concession had not been announced at the date of publication of the results.

“In spite Of strong representations to the Government for continuance of the concession it has now been withdrawn, and the taxation provision for the latest halfa year has been calculated on the basis Of normal tax rates adjusted only for export and

•other taxation incentives,” ■ Isays Mr Hill. • The failure of government ■to recognise the need for

continuance Of the tax concession on trading stocks is difficult to understand as liquidity is still tight and companies are still faced with replacement of stock at inflated prices. “It was to assist in alleI viating this problem that the ' concession was first introduced and there is every justification far its continuance,” he says. Dividends on preference ’and ordinary shares will be paid on February 28. The whole of the unchanged ordinary dividend of 2.5 c a share will be paid from capital reserves, derived from realised capital profits, and will be free of tax in the hands of the shareholders, except for those who have elected to receive their dividends from revenue sources.

Ordinary shares issued in the conversion of 1978 convertible notes will participate in the interim dividend to the extent of 1.25 c a share. These shares will also participate in the final dividend ta the extent of half of the rate declared.