Scott Group sales, profits down

Press, 18 February 1983, Page 12

Scott Group sales, profits down

PA Wellington The Scott Group. Ltd. earned an unaudited consolidated pre-tax trading profit of $492,708. compared with $1,037,000 for 1981, in the half-year to December 31. The chairman of the group. Mr David Scott, said that after provision for tax of $184,708 ($429,000 in 1981) there was a net tax-paid trading profit of $308,000 ($608,000). In 1981 the company realised additionally $193,000 tax-free from sale of surplus assets but there had been no earnings from this source in 1982. Sales for the half-year amounted to $15,764,000. * compared with $16,141,090 for the same period of the previous year. Mr Scott said trading conditions had been difficult. “In our trading sector.

margins have come under pressure as a result of competition in a declining market. “Although our Spincraft Division is achieving good results on the Australian market, profitability is well below the level we require. This is because of both our inability as a result of the price freeze to implement a planned price rise in late June,' and the depressed state of the New Zealand market.” Rationalisation had been completed of die-casting in Auckland, where large nonrecurring charges had been incurred against revenue

association with the relocation of equipment. “This operation is now running efficiently and will contribute well to future profits," he said. “A tight control on both inventory and debtors has been maintained and as a consequence the company finances continue in a healthy state, well able to deal with future trends. An interim dividend of 4c per share (8 per cent as for last year) will be paid on April 15, on all issued ordinary capital. The dividend will absorb $206,149 of the profit earned.