CPD improves its technology

Press, 7 August 1981, Page 8

CPD improves its technology

None of the major energy projects had yet contributed anything of significance to Cable Price Downer, Ltd, because planning was still proceeding towards the calling of bids, according to the chairman (Mr R. W. Steele) in the annual report. As a consequence, the engineering division’ was at a stand-still, with a heavy dependence on . day-to-day orders to keep the workforce employed, he said.

The engineering subsidiaries .continued to suffer from a lack of demand, and this was not expected to ■ change in the immediate i future. “It has been determined.

however, to maintain their

activities (at less than breakj even point, if necessary) and these companies are in the process of improving their capacity and capabilities to ensure that they have the ability to cope with the higher technological standard that will be required when the Government’s energy programme comes on stream,” Mr Steele said. CPD had entered into a joint venture equally with Motherwell Bridge Holdings. Ltd, of Scotland. Motherwell runs the largest steel fabri-

cation plant in the United Kingdom, and has been particularly active in making storage tanks for the North Sea oil producers. The joint venture will work from the premises at Wiri, Auckland, which were being used by the whollyowned subsidiary, Price-Nor-steel (Fabricators), Ltd. ■ “This association will significantly broaden the range of. expertise and capacity in the important field of natural gas-related projects," he said.

The merchandising subsidiares achieved record sales and profitability in the March 31 year, and their future prospects look good with a renewal of customer confidence sustaining record sales in virtually all products.

In the manufacturing division, forward orders, in real terms, had increased substantially, and the companies in this division look set to produce even better profits than those of 1980-81.

“It is too early to predict the result of the group in the year to March 31, but given a continuation of the present pattern, the trading result should sustain the upward trend shown last year,” Mr Steele said.

The group net equity profit, including capital profits, rose 5.4 per cent to $10,164,000 in the year to March 31. Capital profits totalled $274,000 ($1,766,000 previously), and the group’s share of associated company results increased 54.5 per cent to SI.SM. The group net profit, after tax. increased 19.2 per cent to $8,649,000, on a turnover 15.1 per cent higher at $254M. The tax provision rose $1,225,000 to $4,905,000, and depreciation increased $559,000 to $3,894,000.

A recommended final dividend of 12c a share increases the'annual rate from 18c to 21c a share (21 per cent). The dividend requirement is $2,956,000, and it is covered 3.3 times by the profit after allowing for the preference dividend.

The proposed one-for-five bonus issue does not participate in the final dividend. Shareholders’ funds rose $7,110,000 to $67,236,000, including steady ordinary capital of $14,075,000.

Working capital rose $1,133,000 to S3OM, and the current ratio declined from 1.5 to 1.4 to one. The net asset backing a 100 c ordinary share rose from 402 c to 453 c.