Rex keeps growing

Press, 11 February 1981, Page 23

Rex keeps growing

PA ' Auckland Rex Consolidated, Ltd, sustained its growth rate in the first nine months of the current year, the company’s deputy chairman and execuitve director (Mr F. Bruell) has said in a report for that period. The considerable growth in all companies in both sales and profits reported at the half-year had continued, he said, and export performance was very substantially ahead of that last year. The company was reaping substantial benefits from sales in the United States market while retaining its traditional sales outlets in the United Kingdom, SouthEast Asia, and other parts of the world.

Its total requirements for South-East Asia were now produced by Rexport in Singapore. Rex’s share of the Australian market showed a steady increase and substanf-'al expansion was expected with the anticipated easing of inflation rates.

The domestic market in New Zealand, however, remained sluggish, restrained, and fiercely competitive, he said.

Despite this the company was increasing its share of the market. He said that the company expected a successful full year and in the longer term the Government’s decision to invest, heavily in energy-re-lated industries would assist the group to maintain growth. For the six months to September 30 Rex raised its interim dividend from 8 per cent to 9 per cent.

This increase came after a 69.1 per cent’ ’t in profit to $1,011,434, achieved despite what were termed difficult trading conditions in both the domestic and overseas markets.

This trading result was boosted by the inclusion of figures for Simon Metal Products, Ltd, which was acquired on April 1, but substantial gains were made by the traditional members of the group. In the March, 1979, year Rex earned a 20.4 per cent higher $1,109,964 and raised the dividend rate from 15 per cent to 17 per cent.