Challenge rural sector remains important

Press, 29 September 1979, Page 19

Challenge rural sector remains important

! The rural sector provided i the bulk of the profits for Challenge Corporation. Ltd, , last year. In this area the company employs 45.8 per cent of its total assets, and; derives 73.9 per cent of its! after-tax profit. Manufacturing and engineering employs 10.0 per cent of the group's assets, and contributes 16.3 per cent of i the profit. This division in- ! eludes McEwans Machinery, [Scott Bonnar, Morrisons. (Great Outdoors Company, D. H. Davies, and Rockgas.' i The motors division, comprising Wrightcars and the 140 per cent interest in Toyota New Zealand, faced diI fficult trading conditions (last year. The division (employs 8.2 per cent of total (assets, and contributes 6.7 per cent to total net profit.

After five years of sustained growth, Challenge Finance recorded a modest 8 per cent profit rise to I $900,000 — after doubling the bad debt provision to! $700,000. The finance arm: uses 22.4 per cent of the. group’s assets, and its profit l is 10.7 per cent of the group’s total net profit.

For the corporate ser-; vices and property devel-j opment division, which employs 11.2 per cent of the group’s assets, a gross income of $9.2M is shown, but a loss after tax of SI.2M — equivalent to 7.2 per cent of the total profit for the other divisions.