C.M.I. fought hard for market share

Press, 10 July 1979, Page 25

C.M.I. fought hard for market share

PA Auckland Consolidated Metal Industries, Ltd, had to fight hard to maintain its marketshare in the year to March 31, the chairman (Mr H. M. Gray) said in the annual report. Costs, especially of selling and distribution, increased significantly, but the value of sales remained steady

during the second half of the year, despite a shorter period because of the Christmas break.

The company continued its efforts to expand exports, but relatively-high prices of New Zealand raw materials were a handicap. The building industry was still depressed, but retail sales remained buoyant, and results in the rural sector were satisfactory, giving rise to hopes that requirements in this area would be kept at a high level.

Lack of skilled labour remained a “continuing and worrying deficiency. It was difficult to encourage people to come to New Zealand because it was regarded as a high-tax country,” said Mr Gray. Shareholders’ funds rose $1,069,766 to $10,921,206, in-

eluding steady capital of $2,772,575. Capital is to be increased by a one-for 10 bonus issue. Term liabilities were virtu all y unchanged at $1,967,068.

The net profit, announced earlier as $1,405,000, is shown in the accounts to have risen $91,347, or 6.6 per cent to $1,471,594, of which the dividend, raised I from 16 per cent to 17 per cent, takes $471,338.

The profit represents 14.2 per cent on shareholders’ funds against 15.4 per cent last year. The profit was after depreciation of $290,211 (up 41,150) and tax of $928,863 (up $204,540).

Of the final dividend of 9 per cent (4.5 c a share) 1.5 c is to be paid from tax-free sources.