Motor Holdings plans revitalised growth

Press, 18 July 1979, Page 22

Motor Holdings plans revitalised growth

PA Auckland Motor Holdings, Ltd, car ’ assembler and parts agent, is planning to supply a wider range of products encompassing agriculture, horticulture, and forestry. The chairman (Mr T. S. Robinson) says in his annual review that these developments should result in revitalised growth for the group. As reported, the company made a strong return to profitability in the year to March 31, earning $1,211,100. The dividend rate is being restored to 15 per cent (7.5 c a share). In 1977-78 the dividend was 11 per cent after lower \ sales, tight liquidity, stock writeoffs, and rationalisation costs resulted in a loss of $640,157. Mr Robinson says that the : latest profit did not measure ‘ up to some of the company’s ■ better years. This year the ’ tax benefits of 1977-78’s loss, and the stock adjust-

ment allowance, which it could not use earlier, resulted in a tax benefit $111,352 higher at $121,202. The company repaid $700,000 to its Eurodollar loan on due date, and planned to repay more in October. During the year a subsidiary took over the wholesale activities of- the former car, tractor, and spare part companies. The assembly company increased production, and was operating at capacity assembling Mazda, and Subaru veI hides. It had not been necessary to open the Waitara plant, but in the jineantime, the plant was being maintained, and was housing part of another subsidiary, Motor Components, Ltd, which makes both original equipment, and replacement vehicle parts. Effort was being made to increase this company’s production for export. The Honda franchise madei

a significant contribution to profits, and it was hoped that heavy machinery agencies will also make a worthwhile contribution in the coming year, despite economic conditions. The Eden Terrace property had been sold for a considerable capital gain, which could be available for taxfree distributions to shareholders. The turnover for the year rose 30.3 per cent to $33.4M. The result was after an equity loss $22,127 higher at $105,340. The ordinary dividend requires $109,555 more at $410,832, and was covered by an earning rate of 39.7 per cent on ordinary capital steady at $2,738,880. The return on average shareholders’ funds was 13.7 per cent. The total shareholders’ funds were $675,268 higher at $9,251,108. Term liabilities were reduced $1,300,512 to $1,170,213.