Commerciald Christchurch Press profit improves

Press, 11 May 1979, Page 16

Commerciald Christchurch Press profit improves

The directors of the Christchurch Press Company, Ltd, are recommending a one-for-five bonus issue, after an increase in audited net profit for the year to • March 31 of 42.5 per cent to $379,313. “Although the earnings are a substantial increase on last year’s figure, they still fall short of the earnings of $384,765 achieved on a turnlover of $7,323,261 two years 'ago for the year to March 31, 1977,” the directors say in their preliminary report. In 1974 the company earned a net profit of $362,466 on a turnover of $4.5M. Total revenue in the latest year rose 14.8 per cent to' $9,235,690, and the : profit ratio to sales was 4.1 per cent. Five years ago the

>return on sales was 8.1 per cent. The profit was after providing $126,548 more for taxation at $321,501. The directors recommend a final dividend of 9 per cent on the shares before the bonus issue, making an unchanged total of 14 per cent on the old capital. The earning rate on capital improved from 21.3 per cent to 30.3 per cent. The dividend will be paid on June 28, ex dividend June 19. Books close for entitlement to the bonus issue at 5 p.m. on July 3, ex bonus June 29. The directors say that they are concerned about the continually rising costs in the industry, and although circulation and advertising volumes have been main-

tained the return on sales is still not satisfactory, they say. The company proposes to increase its nominal capital from S2M to SSM. The directors have no plans to issue any additional shares at this stage, they say. The distribution of the bonus shares is to be made from the Land Revaluation Reserve. Shareholders will be asked to approve the bonus issue and the increase in capital at an extraordinary general meeting to be held immediately after the annual meeting on June 28.