Devaluing N.Z. dollar affects Bayley

Press, 16 March 1982, Page 35

Devaluing N.Z. dollar affects Bayley

The decline in the value of the New Zealand dollar helped contribute to the extraordinary loss from the sale of the New Zealand subsidiary of Michaelis Bayley, Ltd, the diversified Australian group, the directors said in a half-yearly report.

The loss on the sale was increased because of the devaluing currency between July 1 and the date of settlement on the disposing of the subsidiary. Michaelis Bayley, Ltd, earned an unaudited group net profit of $804,000 in the six months to December 31, compared with a loss of $712,000 previously.

Included in the result was an extraordinary loss of $190,000 ($1,446,000 previ-

ously), and was after providing $176,000 less for depreciation at $362,000, and $lOl,OOO less for interest on borrowings at $429,000. The taxation provision fell $95,000 to $629,000. . Group sales fell 29 per cent to $21.4 million. The directors said the reduced sales reflected the decisions taken during the last year to improve the profitability of the company, which included the sale of the merchandising activities of the trading division from May 1, the sale of Michaelis Bayley (N.Z.), Ltd, from June, and the formation of a partnership between the plastics division of Michaelis Bayley (Aust.), Ltd, and the Fowlers Vacola division of

Hooper Bailie Industries, Ltd. from October 1. The increased profit was attributed mainly to the better trading activities, more efficient use of funds, and elimination of losses and non-recurring expenses included in last year’s corresponding results. Previously, taxation had been calculated at prima facie rates. However, for this period, taxation had been calculated after adjusting for items which were recognised as being exluded from taxable income for the present financial year.

A steady interim dividend of 10c a share (10 per cent) is payable on April 7, ex dividend on March 23.