Fuel study by Trans. (N.C.)

Press, 3 December 1982, Page 16

Fuel study by Trans. (N.C.)

Transport (North Canterbury) Holdings. Ltd, the Raiigiora-based cartage group, has been investigating the possibility of making its own alternative fuels, according to the chairman, Mr W. H. Scrimgeour, in the annual report. Preliminary investigations were carried out. and further experiments and studies were being conducted into the possibility of making the group self-sufficient in its fuel supplies. The directors expected to be presented with a complete feasibility study of all aspects of alternative fuels, and how the company could best use them, by March or .April, he said. The Government had assured the industry that compressed natural gas (CNG) in particular, would always remain at about half the price of petrol. If the research so far completed was an indication, the savings in the group’s

fuel account could be more than $500,000 a year. “This project, in my opinion, is one of the most exciting undertakings to be made by this company since turning public in 1973," he said. On road user charges. Mr Scrimgeour said that this continued to be a drain on funds. Liquidity had caused some concern to management. particularly in the winter. It was apparent that the Ministry of Transport were paying more attention to policing hubodometers' and the weights of vehicles than before, but the number of prosecutions were well below one per cent for the whole fleet. "One of the disturbing features of this increased weighing by the Ministry, is the number of vehicles stopped and the length of time taken to weigh for no violation. “The time taken to weigh

is in itself a penalty, averaging about one half-hour," he said. The enforcement overseas by proper weighbridges, where vehicles were weighed as one unit instead of the more inaccurate New Zealand method of sums of axles together, would be better for both the Ministry and the operator. Because of the possibility of changes in the transport system and the current recession. the directors began a programme of restructuring aimed at reducing expenditure without any loss in efficiency or turnover. The first stage has only been working for three months, but there had already been a saving in capital equipment and manpower, and these were reflected in the accounts for the latest year. Mr Scrimgeour said. The company earned a group net profit of $’799,320 in the year to September 30,

compared with $723,526 in the previous 18 month period (after a change in the balance date). Total revenue was $13.9 million, compared with $17.3M for the 18 months previously. The profit was' after providing $402,087 less for depreciation at $652,125. and $6202 less for minority interests at $5419. No tax was payable after allowing for deductions, allowances, and tax losses brought forward. A recommended final dividend of 10c a share gives an annual rate of 17c a share (17 per cent), compared with 23c a share for the 18 month period previously. The ordinary dividend requirement is $215,570. and it is covered 3.3 times after allowing for the preference dividends. Shareholders' funds rose $489,087 to $4,952,998, including steady ordinary capital at $1,268,058. The current net deficit rose $278,756 to $1,061,363.