Bright prospects for Carbonic Ice

Press, 4 December 1978, Page 23

Bright prospects for Carbonic Ice

The future prospects of] the exports of Carbonic Ice,! Ltd, are bright, and it is confidently expected that the sales for the current finan-I cial year to August 31 will I exceed those of 1977-78 says: the chairman .'Mr C. C. Hol-1 land) in the annual report. The managing director j (Mr T. L. Uren) reported) considerable interest in the ■ company’s products on ai recent overseas sales trip,; and a number of new pros-! pects were established, he says. "With the increasing number of large carbon-' dioxide systems being manu- ; factured it was found neces-| sary to enlarge the com-) pany’s facilities. “Manufacturing plant and; machine tools are also being( continually updated with the I result that manufacturing j facilities are well geared to; meet future demands.” Carbonic Industries, Ltd, i the subsidiary company, in-' creased trading profit 50 per) cent on the previous corresponding period. In the current year there has been a levelling off in component material costs i and the policy of regular

I pricing increases is now .having a beneficial effect on results, Mr Holland says. “Perhaps equally important has been the reductions i achieved in production times I for the manufacture of many 'of the company’s products.” In an endeavour to widen :the base of group activities, | a two-thirds interest was acquired in Kenny Industries, I Ltd, the Christchurch-based (pneumatic equipment manufacturer a distributor, on |.luly 31. “It is well established in : the New Zealand market and ihas excellent export prosI pects.” ! As reported, group net (profit rose 97.8 per cent to i $348,479 in the year to I August 31. ; The profit was after pro(viding $3829 more for depreciation at $18,150. The directors have decided to J change the accounting policy (to bring in all available and i estimated export allowances 'and incentives in the year in (which they apply rather (than the following year after i Inland Revenue confirmation has been received. ( As a result, a tax credit (of $62,782 from 1977 allowance and incentives has

i (been brought in in addition ( 1 i to the $348,479 profit. A recommended final divi- ( -jdend of 8c a share makes a( si steady 14c a share (14 per si cent) for the year. But, the / (payment of a special bonus I dividend of 10c a share! 1 (raises the dividend payout , ito $164,578. The ordinary! -(dividend, excluding the I :, (bonus dividend, is covered! j(3.6 times by the profit. -1 Shareholders’ funds rose | I ($245,613 to $1,982,501. Ordinary capital rose $137,149! i!to $685,744 after the one-1 iifor-four bonus issue, capital] -(reserves increased $1 to! i 521,328 and revenue reservesII were $108,463 higher at i 31 $1,186,309. o I The earning rate on average shareholders’ funds rose - from 10.4 per cent to 18.7 - per cent, and on capital i- from 32.1 per cent to 50.81 o per cent. ( 7 Working capital rose! d $214,794 to $1,109,664, but! s the current ratio fell from! 3 3.5 to 2.7 to one. r The shares last sold for! r 225 c for a dividend yield, j 1 excluding the bonus divi-| dend, 0f~6.2 per cent and an t(earnings yield of 22.3 per, -(cent. The price-earnings' si ratio was 4.5.