Lichtenstein stocks profitably sold

Press, 7 October 1980, Page 18

Lichtenstein stocks profitably sold

Because of increases in both the value and wool processed by E. Lichtenstein and Co., Ltd, it was inevitable that stocks at the June 30 balance date should rise a further $11.5 million according to the chairman (Mr P. W. Grayburn) in the annual report.

-Since that date, the total of these stocks had been sold profitably, he said. The general manager (Mr I. H. Lichtenstein) said that the last financial year was one in which in the past several years the planning yielded full benefits. It was also a year in which significant events would influence the future of the company. These included the installation of a new’ scouring plant, the extension of wool dumping and container facilities, and an increase in the national wool clip, allowing greater scope for increased production, he said. Mr Lichtenstein also, commended the move by the Wool Board to terminate its freight agreement with the Conference Shipping Lines. It should allow New. Zealand primary . processing plants to benefit from cost economies by. achieving more economical freight rates.” , ■ '

As reported, the group net. profit before extraordinary items, rose 86.4 per cent to $846,813 on sales 34.4 per cent higher at $37.4 million. Extraordinary profits totalled $53,955 (nil previously). The profit was after providing $34,312 more for tax at $353,022, and $67,159 more for depreciation at $160,144.

A recommended final dividend 4.5 c a share gives a steady annual rate of 9c a share (18 per cent) on capital increased by a one-for-five bonus issue made earlier in the financial year. The dividend rate absorbs $l6-3,860 and is covered 5.1 I times by the profit.

The directors have also recommended a one-for-four bonus issue, the fourth consecutive year that such an issue has been made. The new shares do not participate in the final dividend but the directors expect to be able to maintain the annual rate on the increased capital. Shareholders’ funds rose $884,983 to $3,822,266, including ordinary capital up $155,000 after the one-for-five bonus issue last year, Working capital rose $256,208 to $1,284,313, and the current ratio was steady at. 1.1 to one.