Slow Trading for D.R.G.

Press, 18 April 1981, Page 19

Slow Trading for D.R.G.

PA Auckland Trading by D.R.G. (New Zealand), Ltd, in the first quarter of the 1981 year has been slow, the chairman (Sir John Marshall) says in the annual report. But election year usually brings an increase in commercial activity, he says, and D.R.G. is well placed to take advantage of that expected improvement. As reported, D.R.G. earned $1,825,000, on sales of $26,837,000 in the year to December 31.

Exports increased 22 percent and exceeded a value of SIM for the first time. Sir John points out the improvement in liquidity as

shown in the accounts, particularly the reduction in bank " overdraft from $1,051,000 to $427,000. From July 1 the subsidiaries Business Equipment, Ltd, and Dri-Copy New Zealand, Ltd, will amalgamate into a new division called

DRG Business Equipment, The establishment costs will be met out of profits earned, and only a small benefit flow through into group results. Sir John writes that the company will withdraw from the manufacture of folding cartons. The closure will take place next month. He says that a decision was taken last November to sell the carton operations as a

going concern, but no satisfactory arrangement could be made. Financial losses arising from the closure are not considered material to the results of the group as a whole, and adequate provision has been made in the accounts, he says. The consolidated balance sheet shows total share capital and reserves of $13,959,000 compared with $12,791,000 in 1979. Investments were $2,200,000 ($1,880,000). Current assets were $11,401,000, including stocks worth $6,991,000 and fixed assets $4,970,000 ($904,000). Current liabilities were $4,436,000 ($5,040,000) including creditors of $3,601,000 ($3,423,000).

• As reported, the company has recommended a steady dividend of 7.25 c a share (14.5 per cent) which is covered 2.8 times.