Fuel crisis affects Airwork

Press, 11 August 1979, Page 19

Fuel crisis affects Airwork

The fuel crisis has cur-i tailed the sales of aircraft in the short-term, says the chairman of Airwork (N.Z.), Ltd, (Mr J. B. Brazier) in the annual report. This may mean a change to turbine-powered aircraft, and more emphasis on fuel efficiency, he says. “The company is pursuing the possibility of alternative fuels which could be used if fuel supplies deteriorate.” The group has continued to expand its distributorships and agencies, which are a major part of its business.

Air Pacific has ordered two Bandeirante P.l aircraft for delivery this month, and the group is hopeful of further sales in the South Pacific region in the current financial year.

Airwork continues to supply the New Zealand aviation industry with a wide range of aircraft materials, which is a major source of revenue.

The aviation and general engineering divisions are essential for the maintenance and after sales service of the major agencies, and in common with most labourintensive service centres, has its difficulties, he says. “The emergence of cooperative syndicates and cooperative aerial service com-

parties has been a feature of the period under review. “The group thinks that the company’s farmer shareholders are better served by owning shares in a publiclisted company, receiving shareholders’ discounts, dividends and being able to sell their shareholdings through the stock exchange,” he says.

As reported, group net profit rose 13.9 per cent to $191,056 in the year to March 31, on sales 15.5 per cent higher at $5,795,737. Included in the sale figure are export sales, up more than $600,000 to $762,127.

The profit was after providing $13,363 more for depreciation at $89,909, but $30,766 less fo for tax at $15,942 because of export allowances. A recommended final dividend of 3.5 c a share makes a steady annual rate of 6c a share (12 per cent) on ordinary capital increased by the one-for-bonus issue in August, 1978. The dividend requires $35,993, and is covered 5.2 times by the profit, after allowing for the preference dividend. Shareholders’ funds rose $55,097 to $1,322,942, including ordinary capital up $27,245 to $299,940 because of the bonus issue in August, 1978. The earning rate on average shareholders’ funds rose from 14.9 per cent to 15.3 per cent.