Agency loss will reduce Bridgevale profit

Press, 11 July 1980, Page 8

Agency loss will reduce Bridgevale profit

It is expected that profits from the transport activities of Bridgevaie Consolidated, Ltd, will decline in the current year because of the loss of the BP fuel agency, according to the chairman; (Mr T. M. Scanlon) in the annual report. , In the report of the West-: port-based diversified com- I nany, Mr Scanlon said that: other trading should remain! steady,- and there would be some improvement in the re-j suit of the Parker Lambj Timber Company, Ltd, after: the disposal of land was' completed. Bridgevale increased its; holding in Parker Lamb to 57 j per cent during the year.! The company incurred a loss; in the latest year because of the continued holding costs,’ related to the vacant land:

iadjacent to the Onehunga i railway station. ! “However, the Parker Lamb group as a whole was profitable because of profits ■ earned by Gibbs Transport, ■Ltd, the Charming Creek iCoal Company, Ltd, and Perkins Bros, Ltd,” he said. i On December 1, BP. Ltd, : cancelled the fuel agency iheld by Perkins Bros and :closed its Westport depot. 'The Buller region was now serviced direct from Nelson. i “It .is understood that the j decision taken by BP was an : inevitable rationalisation in The face of increasing costs ■and shrinking fuel volumes, iPerkins Bros has now ceased Trading,” Mr Scanlon said. I. Bridgevale increased its i holding in Midwest Finance Holdings, Ltd, to 47.5 per icent and this company pro'duced a record profit of

i $30,149 in the year to March =3l — an increase of 41 per (cent. I The group net, profit of i Bridgevale rose 29.3 per cent (to $74,225 in the year, to (March 31, on group turnover J 14.7 per cent higher/ at $619,076. The result included (profits from The sale of assets and the equity profit from Midwest Finance. No tax was payable because of tax benefits within the group. Depreciation rose $19,186 to $49,928. A steadj' annual dividend of 3c a share (6 per cent) is recommended, of which 2.5 c a share will be tax-free. The dividend requires $17,424 and is covered 4.2 times after allowing for the preference dividend.

Shareholders’ funds rose $53,046 to $897,667.