Neil continues to trade buoyantly

Press, 15 August 1984, Page 37

Neil continues to trade buoyantly

Neil Holdings, Ltd, is still trading well, say the chairman (Mr P. F. Clapshaw) and the managing director (Mr R. M. White) in their review of the annual accounts.

The relatively buoyant trading conditions experienced in the second half of the past financial year have continued into the first quarter of 1984-85, they say. The position of the housing front remains unchanged, though, with material costs rising since the relaxation of the price freeze.

“The supply of mortgage finance, always inadequate, has been grossly affected by interest rate controls and the increased Government stock holding requirements placed on institutions.

"While we continue to find ways of assisting our

purchasers with finance this is becoming increasingly difficult and complicated,” the report says. Explaining the sale of Turnbull and Jones, Ltd, and its subsidiaries to CoryWright and Salmon, Ltd, the review says: “During the last few Es the directors have aware of the duplication of investment in the wholesale electrical merchandising industry and have considered for some time that it was desirable for there to be a greater degree of co-ordination of resources in this industry.” Meanwhile, export sales jumped 37 per cent to $2.06M for the year including $1(248,851 representing sales of commercial cooking equipment produced by Moffat Appliances, Ltd. Moffat, a wholly-owned subsidiary of Neil, has a worth-while market in the

United Kingdom and has set up a small branch operation there. Timber sales to Australia continued to be affected by weak demand, although the position has improved in the current financial year. Total stocks at $25.9M were slightly ahead of last year’s figure of $25.1M. The book value of Neil’s total land stocks, including developed sections, land under development and land held for future development, has lifted 6.8 per cent to $17.9M. As reported, net profit for the year ended March 31 improved to $1,759,183 ($1,466,866) after a taxation provision of $1,019,357 ($879,175). In addition, there were extraordinary items of $55,200 (nil) while sales were down slightly at $52,105,383 ($53,979,135). The 4c dividend per share (3.5 c is covered 3.9 times.