Bisley profit falls 34 p.c.

Press, 31 October 1981, Page 18

Bisley profit falls 34 p.c.

The group net profit of A. M. Bisley and Company, Ltd, fell from ’ $1,676,429 to $1,100,542 (34.4 per cent) in the year ended June 30, the directors announced yesterday. Sales rose 6.4 per cent to $14.4M.

No taxation provision is necessary because of investments in forestry and export, and other incentives.

Despite a temporary lull in the New Zealand market in June, which caused a considerable amount of turnover to be transferred into the opening months of the new financial year, local sales throughout the year ■ remained, as expected, more than 20 per cent ahead of the previous year. Export sales were ahead for 11 months of this year. Last year there was a substantial export shipment in June, which did not occur again this year. This resulted in export sales for the full year being 26.5 per cent lower at $3,009,467 ($4,100,244). The company has continued to expand turnover and gross profit. The expanded capital structure is enabling the company to increase its share of the New Zealand market. The release this year of the Claas Green line of round balers and agriculture machinery, together with - the company’s new

Hesston range of balers and harvesting equipment, and expanding activity in pumps, irrigation and bulk grainsales, are already resulting in additional ( sales within New Zealand.

Because these business opportunities can now be taken without much expansion of basic cost structure, the outlook for future profit performance is good. Earnings rate is 24.3 c a 50c share on year-end capital (including bonus issue) of $2,265,307 and the dividend is covered 3.1 times.

In May shareholders received a l-for-7 bonus issue and at balance date the 1-for-2 cash issue was partly subscribed. The cash issue was well supported by shareholders and fully subscribed during July. The directors recommend a final dividend on ordinary shares, including the l-for-7 bonus issue, of 15 per cent, or 7.5 c a 50c share, to be paid tax-free in shareholders’ hands from share premium reserves.

Shareholders will thus recieve a total dividend of 23 per cent (11.5 c a share) in respect of the year but as this is paid on higher capital, it is the equivalent of 26.29 per cent (last year 23 per cent) on the pre-bonus level of shareholding. The dividend will be payable after the annual general meeting to be held on December 11.