Mot. traders expansion

Press, 2 December 1978, Page 17

Mot. traders expansion

i PA Auckland Motor Traders (N.Z.), Ltd, intends to spend $2,225,000 .on diversification in the next 12 months, the chairman (Mr C. A. Staples) says in the (annual report. The funds for this are in hand, and several projects have been indentified and an .announcement is expected i shortly, Mr Staples says. The investment would be based on a substantial domestic market, have export potential, be diversified from present manufacturing and merchandising activities, and complement an additional product range of technology through licensing or other agreements with a foreign manufacturer. M.T.L. also wants an interest of at least 51 per cent in new ventures. The company has a threeyear programme for upgrading its facilities. As announced, the groups net trading profit fell

($318,264, or 63.4 per cent to .$183,410 in the year to July 31, including a tax credit of i $24,804 against a payment of $358,879 last year. In addition, there were capital profits of $253,544. The drop in trading profit i was caused by a 7.4 per cent sales decline to 520.3 M reorganisation and the disposal of surplus, ageing, and doubtful stock. Sales and profitability in the first quarter of the current year have shown a significant improvement, says Mr Staples. The steady tax-free ordinary dividend of 14 per cent and preference dividends require $404,662. The earning rate on funds dropped from 6.8 per cent to 1.1 per cent, and that on capital from 22.9 per cent to 3.9 per cent. After a SI.4M revaluation of fixed assets shareholders’ funds rose $1,603,487 to $9,682,785.