Mainzeal profit rises 31.3 p.c.

Press, 28 March 1981, Page 21

Mainzeal profit rises 31.3 p.c.

Mainzeal Corporation. Ltd. the Auckland construction group, managed a 31.3 percent increase in tax-paid profits in the six months to December 31. On a equityaccounting basis, profits were $300,593 compared with $228,991.

The directors have declared an unchanged interim dividend of 7 per cent, ex dividend March 30. They said that the uncompleted value of work in hand totalled $53,400,000 ($31,900,000).

The result for the six months was regarded as satisfactory. The percentage margin of trading profit to turnover had reduced compared with the previous year and continued a trend of reducing margins that had existed in the construction industry for some time.

directors said. The company had been successful in obtaining a marked increase in forward work which should help to offset the effect of reduced margins. The company had identified specific opportunities in Australia and was undertaking a retail and office development in Queensland. The directors said that the current escalation of building costs on top of large cost increases in 1979 and 1980 continued to restrict any significant recovery in' the building industrv. Taxation took $64,000 ($63,000) and extraordinary items $34,000 ($63,000). The group gained a dividend of $lOO,OOO (nil) from an associate company. It also incurred a share in a loss on associated companies of $77,000 ($62,000).