Ajax G.K.N. exports increasing

Press, 23 September 1980, Page 18

Ajax G.K.N. exports increasing

PA Wellington At $1,285,703, export sales by Aiax GKN, Ltd, increased by 137 per cent in the last June year, and export sales now represent more than 8 per cent of domestic sales value. The chairman of the Lower Hutt-based bolt, nut and screw maker, (Mr P, J. Kincaid) says this in his annual review, and he says that a substantial portion of these exports were to the associate Melbourne company, Ajax Nettlefolds. As already reported, in the year ended June 30, the company increased its net earnings 8.9 per cent, after an increase in sales of 9.5 per cent. Net profit rose from $1,607,000 to $1,749,000 on sales totalling $17,041,427. A total dividend of 22c a share (22 per cent) is being paid — all tax-free, the final being 14c. As in past years, Ajax G.K.N. Holdings, Ltd, which holds 70.2 per cent of the shares, has elected to take its total dividend from taxpaid profits. Mr Kincaid says this has substantially increased the availability of tax-free divi-

dends to the- New Zealand public shareholders. The dividend requires $627,000 ($484,000) and is covered almost three times. The earning rate on shareholders’ funds slips from 14.9 to 14.6 per cent, shareholders’ funds having increased from $12,430,000 to $13,828,000. At balance date the 100 c shares had a net asset backing of 485 c (436 c in 1979). Mr Kincaid says: “When compared with the results for the first six months, the profit for the year just completed reflects a decline both in volume and profitability during the second six months. “Based on the order book at the end of the year, and the economic outlook, it is expected that the present situation will continue for a portion of the coming year.” However, he also says that the company is wellplaced to suit the changing needs of both consumers and a restructuring economy, and that it will obtain .its fair share of the construction and maintenance projects arising out of the country’s future energy development.