Ceramco trading profit drops

Press, 28 June 1983, Page 31

Ceramco trading profit drops

Losses in some divisions of Ceramco, Ltd — now disposed of — and depressed economic conditions caused a 20.2 per cent drop in the group’s audited after-tax trading profit in the year ended March 31, the directors announced yesterday. The profit includes $1,554,000 of equity-ac-counted earnings ($1,350,000 last year) and was before deducting extraordinary items of $138,000 ($1,667,000). The over-all surplus on operations for the year after deduction of extraordinary items was $6,646,000, compared with $6,834,000, for the previous year — a decline of 2.8 per cent. Group companies recorded sales of $189.4 million ($166.4 million) with taxation provisions of $1,593,000 or 25.4 per cent ($2,442,000 or 27.2 per cent), and depreciation of $2,883,000 ($2,358,000). Earning rates were: 10.9

per cent on average ordinary shareholders’ funds (16.3 per cent) and 31c an ordinary share (46c). Shareholders’ funds at March 31 totalled $64.7 million ($62.2 million) representing an equity ratio of 48.5 per cent (47.2 per cent) on total assets of $133.3 million ($131.6 million). Net asset backing an ordinary share increased to 283 c (279 c and the current ratio stood at 1.92 (1.91). The directors said that the general decrease in business confidence and levels of activity affected many areas of the company’s operations, especially in the last quarter of the financial year. This, coupled with an inability to pass on cost increases because of the price freeze, affected results for the second six months to a greater extent than had been earlier anticipated. During the year the group disposed of the operations of Trans Midland, Crown Lynn

Canada, and some other activities: after-tax operating losses to the dates of disposal reduced the consolidated profit by $1,265,000 with a profit realisation of $95,000 on disposals. Issued ordinary capital increased by $1,031,115 to $26,074,000 as follows: 707,155 shares to the holders of the $1,200,000 12 per cent redeemable specified preference shares who elected to apply the proceeds of the redemption on April 1 to the purchase of ordinary shares, and 323,960 shares under the employee share purchase and option schemes. The directors recommend a final ordinary dividend of 11c a share (11 per cent) giving a total ordinary dividend for the year of 20 per cent — the same as for the previous year. It will be paid on August 26 from taxfree sources, making the total ordinary dividend for the year tax-free in the hands of shareholders.