Regina meets change

Press, 12 August 1980, Page 23

Regina meets change

Regina Confections, Ltd, the Oamaru-based company, is restructuring itself to answer the problems of inflation, the chairman (Mr C. S. Chalmers) says in his annual review.

He says that despite an increase in turnover of 15.6 per cent and an increase in pre-tax profit of 45.8 per cent, inflation makes it more difficult to obtain a satisfactory return.

"During the year there, was a change in factory management, and a drive is being made to improve the quality and efficiency,” Mr Chalmers says. “Your company has been successful in its application for the South Island electricity subsidy of 25 per cent.'

“However, with increasing costs, restructuring is necessary to retain your company’s position. Your directors are confident that given reasonable economic conditions the current year will be satisfactory.”

As previously reported turnover for the year to

March 31 was $2,693,512 ($2,329,800). Net profit before tax was $45,648 ($43,150) and profits of associates added $21,873 ($8795}.. Tax-paid profit was $67,521 ($51,945); the tax provision was $41,096 ($22,537); capital profits were $4623 ($714). The reports says that the proportion of net profit absorbed by taxation increased to 37.8 per cent (30.3). Group profit before tax as a percentage of group turnover was 4.0 per cent (3.2).

The directors recommend to the annual meeting on August 22 a final eividend of 6c a share; added to the 6c interim this makes a 1c increase on last year’s 11c total payout.

Current assets are $790,463 and liabilities $431,449, giving a current ratio of 1.8 (1.8). Shareholders’ funds have increased to $992,437 and the asset backing a 100 c share is 307 c (284 c-

The earning rate on shareholders’ funds is 7.6 per cent (6.2) and the dividend is covered twice (1.6).