Good result for UEB

Press, 14 November 1981, Page 21

Good result for UEB

The directors of UEB Industries. Ltd. have increased the interim dividend after an excellent result in the six months to September 30. The unaudited total group net equity profit rose 69.7 per cent to $6,934,000. including an extraordinary loss of $104,000 ($234,000 profit previously), and minority interests took $26,000 compared with a benefit of $59,000 previously. An increase in the interim dividend, from 3.5 c to 4.5 c a share (9 per cent), has been declared, payable on December 4. The carpet division comprising • wool scouring, the carding, and spinning of yarn and manufacture of tufted and woven carpet, together with furniture manufacture produced a profit which was well ahead of both forecast and the previ-

ous year said the chairman, Mr L. M. Papps. Significant changes were made in the marketing and manufacturing direction of the carpet division in the past two years and the results reflect these changes, he said. The loss by fire of the Matheson Invercargill spinning plant in April, caused shortages of yarn in the carpet plants, the reinstatement of the carding and spinning machines at Awatoto, near Napier, together with new coal-fired boilers is proceeding on schedule. The directors expected the carpet division to make a bigger contribution of the company's profits in succeeding years, Mr Papps said. In the period under review the tourism activities were sold. This included the shares in the Tourist Corporation of

Fiji companies, the shareholdings in Traveland (N.Z.), Ltd, and World Travel Service. Ltd, and the tour, transport. and marketing sections in New Zealand and Australia. Since the balance date, the hotels in the Inns of the Pacific, Ltd, chain had been sold to a New Zealand syndicate with payment to be effected within a two-year period. The group results included a loss for the Trans Holdings' companies in that six months.

The selling of the tourism division and the consequent elimination of any further losses from that source would increase over-all profits in the future, Mr Papps said. Exports at $19.9 million, were still 17 per cent ahead of the same period last year.

“The building division is negotiating some exciting contracts for some of its products,” he said. The company continued its planned capital expenditure programme, and more than S6M was spent in the six months on new plant, equipment and property. A higher amount was to be spent in the second-half of the financial year, and the programme would continue into 1982-1983, he said.

Sales increased 6.4 per cent to $118.2M, leaving a net trading profit of SB.3M compared with $2.7M previously. The profit was after providing $1,227,000 for tax compared with a credit of $1,083,000 previously. Earnings a 50c ordinary share improved from 6.5 c to 12.3 c, and the net asset backing for each of the shares increased from 149 c to 158 c.