CCL finds new strength

Press, 24 July 1984, Page 30

CCL finds new strength

PA Dunedin In spite of a 14 per cent profit slide, the financial structure of Computer Consultants, Ltd, was considerably strengthened last year, says the chairman, Mr John Holdsworth, in the annual report ’‘Financial objectives established in 1982 have largely been achieved with the rearrangement of the company’s finances.” Working capital and equity ratios were improved as a result *

The managing director, Mr Dennis Rowe says restructuring into separate divisions also proved beneficial, enabling greater management specialisation. Although uncertainties about sales tax in the first half of the year under review confused and distorted computer buying, the second half produced better sales. The group’s Fourth Estate publishing arm continued strong growth both in advertising and subscription revenue, he says.

Australian interests purchased in the 1983 financial year were absorbed successfully and there was now promise of joint software development under the Closer Economic Relations agreement. CCL’s group profit for the year was $706,000 ($827,000 previously) and the provision for tax fell $190,000 to $672,000. Profit yield on average shareholders’ funds declined significantly from 23.5 per cei{f to 17.6 per cent, and

earnings per share dropped from 24c to 19.1 c. During the year the company issued 176,580 shares to purchase Data Control, Ltd, from United Printing and Publishing, Ltd. In spite of the poorer earnings on shareholders’ investment, the ratio of current assets to current liabilities improved to 1.3 (1.2) and asset backing rose from 93c to 109 c a share. Working capital also increased substantially, by $909,000 to