Welgas profit improves

Press, 19 July 1979, Page 19

Welgas profit improves

Welgas Holdings, Ltd, for-1, merly the Wellington Gas ! Company, Ltd, more than! doubled unaudited total i group net profit from I ($55,000 to $121,000 in the (six months to June 30.

Included in the latest result is a capital profit of $52,000, and discounting this the net trading profit was up 25.5 per cent to $69,000. Sales rose 20.9 per cent to $2,780,000, and the profit was after providing $3OOO less for tax at $44,000.

The trading profit shows an improvement on the 1978 result mainly because of im-

proved trading from the subsidiary, Domestic and Industrial Heating, Ltd, the directors say.

The directors are concerned at the low profitabil ity of the gas section of the business where cost in-

I creases of more than ($400,000 have been absorbed Isince the last tariff increase in August, 1977. ; Because of increasing inflationary pressures the holding of tariffs cannot

continue for much longer, they say. The company has now completed its research analysis of the compressed natural gas (C.N.G.), market for vehicles and is confident that C.N.G. will make a reasonable contribution to pro-

fits. The directors advise that the balance date of the com-

pany has been changed from December 31 to March 31. A tax-free interim dividend of 5c a share (5 per

cent) has been declared pay able on August 17, ex divi dend on August 8.