Wilson Neill buoyant

Press, 16 August 1980, Page 19

Wilson Neill buoyant

Substantial increases in turnover have been registered in all divisions of Wilson Neill, Ltd, in the first quarter of the new year, the chairman (Mr J. A. Valentine), told shareholders at the annual meeting.

Exports are 25 per cent ahead, liquor is 54 per cent ahead, and home appliances are 84 per cent ahead. Mr Valentine reminded the meeting that to some extent this was because of expansion of liquor outlets, and the takeover of Sedley Wells by the appliance division.

“But these figures give your board confidence in the company’s performance for the 1981 year-end,” he said. The growth is a continuation of the 83 per cent improvement enjoyed by the liquor division to March 31, and the 65 per cent increase marked up by appliances. Lower seafood sales had

caused a slight decline in; exports, and higher costs in the appliance division resulted in a smaller profit from that quarter. Over all, the company increased its tax-paid profit in the year to March 31 9.5 per cent and, when extraordinaries are included, by 27.6 per cent. The return on shareholders’ funds has been maintained at 19.7 per cent, which is well above that for most New Zealand companies, and earnings a share have increased slightly to 62c. The new managing director (Mr R. E. 0. Wilson) asked for more recognition by the Government of the part played by the service sector of the export industry, which has lost some of the incentives to work overseas under new tax regulations. I Under the latest amend-!

laments the producers — for i instance, in horticulture — get the export incentives. . Those who market the produce overseas lost that advantage. “The producer cannot sur- ■ vive without someone to ■ service his product, and ■ marketing is a specialist field which takes time and ■ money to mature,” he said. He asked for a betfer balance of incentive. The meeting approved proposals to increase the capital to $5 million from $3 million, to split the 100 c share into 50c units, to ■ make a l-for-10 bonus issue, and to qualify the bonus , shares for an ordinary divi- ■ dend of 16c a share, of ■ which 6.5 c is tax-free. Mr Valentine pointed out : that although the dividend is : unchanged, by paying it to : the bonus shares the rate is j equivalent to 17.6 c on pre- • I bonus capital.