Motor Traders in the red

Press, 14 April 1980, Page 20

Motor Traders in the red

Motors Traders (NZ), Ltd, has reported an unaudited group loss of $66,000 for six months to January 31, and the board has decided ■■ to defer decision Oft a dividend until the full year’s result is known. The directors regard • the omission of an interim payment as unfortunate but believe it is in the best interests of the company and the shareholders. - MTL last year paid an interim 3c (6 per cent) and a final 4c to keep its annual rate steady at 7c, In the corresponding pre* vidUS half it reported a profit Of $332,000, Which Was an advance of 45.6 per cent Over the 1977-78 first half.

J For the last full year the iSprofit was $lBB,OOO. c No tax provision, was neci<esSary for either the 1078-79 3 first half or the full year. 1 The loss cohies after in- » eluding the MTL estimated share of after-tax profits ! from associated companies. The company achieved a - 15.2 per cent increase in - turnover to $11,851,000. For * 1978-79 turnover was >,522,146,000. ! The directors’ report says i the loss reflects difficult I trading conditions experienced in the 1978-79 sec-' ord half arid the first quar* ter Of this year. High inter* Jest rates and rising costs * I have been a factor. tj , They say steps have been J taken "to reduce stock and

operating costs and. coupled [with increasing- sales, there i are indications of a return to profitability. They foresee the recently; acquired Auckland firms, Probert Industries, Ltd. and' Noton N.Z Ltd. making significant contributions to the 1979-80 year’s result. i The directors also say tliatthe traditional automotive? I company ,is being diversified/ 'into a wide range of npn-’-[automotive activities. 1At the same time, the'; company is entering the conversion market. • ;>.( They draw attention tdj the fact that, the company-' still commands concession's, which will allow it to earn* 5270,000 before a tax provi-j sion needs to be made.