Sales of Motor Holdings at record levels

Press, 17 July 1980, Page 16

Sales of Motor Holdings at record levels

PA Auckland Profits of Motor Holdings, Ltd, are running at record levels, the chairman (Mr J. Mowbray) says in his annual review. On the results so far shareholders Can look forward to a satisfactory halfyear announcement. Strong trading maintains the trend of. the year to March - 31, when net profit soared $1,976,886 to a record $3,187,986. Mr Mowbray said the buoyant profit was. the result of the strength of the company’s franchises and the restructuring of its organisation into four main areas.

Strength in .'motorcycles and tractors was not .generally appreciated., -' These ranges could also be extended without disturbing existing franchise arrangements. The reopening of the Waitara assembly plant late

last year was an important event, Mr Mowbray said. Although it was good that such a major asset’ could contribute, there were heavy start-up costs and- planned production was only now being achieved. Profit from this source was minimal last year, but expected to supply an important ingredient this year. He said that directors still had in mind a specified preference share issue to replace the current preference capital which is to mature between January next year and December, 1986. However, because of a strong cash flow the timing of such an issue may be delayed. The accounts show that turnover for the year was 50 per cent higher at $50,097,688, and that the profit was after tax $1,797,203 higher at $1,918,405, and depreciation $3592 lower at $522,453. There were also extra-

ordinary gains of $793,440 (previously nil). _ ■The dividend, raised from 15 per cent to 18 per cent, with shares issued in a proposed one-for-three bonus qualifying for the final 10 per cent, takes $296,499 more at $707,331. It is covered by an earning rate on capital up from 39.7 per cent to 83.6 per cent (it will drop from 52.7 per cent after the bonus). The return on shareholders’ funds has risen from 13.7 per cent to 31.2 per cent. The balance sheet shows total shareholders’ funds $3,1 17,092 higher at $12,368,200. Term liabilities are $144,437 down at $1,025,776.