Big gain for Motor Holdings

Press, 14 June 1984, Page 29

Big gain for Motor Holdings

Motor Holdings, Ltd. produced a big improvement in its final result'for the year to March 31, its group net profit increasing from $188,098 to $1,820,022. the preliminary profit report released yesterday showed. The directors say that as expected, demand had improved in the second half of the year and as production increased and more stocks became available, sales and profit accelerated markedly in the final quarter. "This trend has continued into the first quarter of the current period."

The outlook is for trading to remain buoyant well into

the current financial year providing there is reasonable liquidity in the retail finance sector and that the present consumer confidence is maintained, they

The Industry Development Commissions report on the motor industry is due to be released shortly, and the directors believe that the group's motor vehicle investments will have an advantage in the commission’s recommendations.

The group is well placed to maximise opportunities when the plan for the industry's future is finalised, they sav.

The group's activities outside the vehicle industry have continued to benefit from the improved economy.

The profits for the five months trading from the group’s 45 per cent shareholding in Agricultural Machinery, Ltd (Agmac) have bee'n excluded from the result. The share of the profit for the period to August 1. being Agmac’s balance date, will be included in the Motor Holdings half yearly result. Agmac has traded as expected and is projected to meet the group's return on investment criteria within

iLs first year of trading with the company. The merger of the group's agricultural company into the new operation, which represents MasseyFerguson and Kubota Tractors. together with associated equipment franchises, has reduced and streamlined the investment.

The emphasis on asset management, productivityimprovement and overhead reductions has continued and has contributed to the group's profitability, the directors sav

Turnover was 2.6 per cent higher at $90,731,803. The profit is after provid-

ing $971,047 more for tax at $1,032,084. Interest charges fell $728,949 at $2,296,797.

The latest result includes $642,624 iiast year $33,935' being the equity accounted share of profits of Mazda Motors of New Zealand. Ltd.

A recommended final ordinary dividend of 6c a share is a 2c a share increase on the previous final dividend, but a lower interim dividend gives a steady 11c a share (22 per cent). The dividend is payable on August 15. ex dividend on August 7.