Commercial New era for Clyde

Press, 21 November 1979, Page 20

Commercial New era for Clyde

I PA Wellington ! Clyde Engineering, Ltd, I machinery importers and [ distributors is to change its ; name to Clyde Group. Ltd, j because the company has : subsidiaries in many differlent fields, none of which are I true “engineering” enterI prises. I “The Clyde group is very [dependent on the diesel [ engine, and the shortage of ■diesel fuel at present apparent in New Zealand is hav- [ ing its effect on diesel sales, i and usage,” says the chairman (Mr H. F. Foster). “However, there is still no more efficient way of using a liquid fuel in a mobile vehicle, and diesel engine developments are all aimed .at using a much wider fuel specification than at present. “Although there may be a temporary steadying of demand, we are confident that the expansion of diesel engine applications in New Zealand will shortly return > to its normal growth pattern. “We anticipate an increased share of the markets in which we are already operating, and plan to diver- [ sify away from the group’s 1

earlier heavy dependence on' the construction industry,” Mr Foster said. In his report on the year to August 1, Mr Foster 'says the company faced difficulties in most markets. "The lack of business confidence, and the consequent reduction of investment in [ capital plant, and services, was compounded by the in- [ decision about New Zea- [ land’s future energy sources and transport fuels. “In this regard, the : recently announced Govern- ■ ment decisions on the future of Maui gas are welcomed. “While the year’s results are significantly better than last year’s, the directors are far from satisfied with the return on shareholders’ investment,” Mr Foster says. The accounts show that the earning rate on shareholders’ funds was 11.6 per cent, compared with 7.8 per) cent for the previous 16! months. As reported, group net I profit for the year was: $520,000, compared with $354,000 for the previous 16 months. It was reached on turnover.of $21.7M (526.4 M —total funds employed were $13.5M (513.7 M The ordinary dividend was .

maintained at 12 per cent (12c a share) requiring $241,800. The dividend was covered 1.9 times (0.8 times).