N.Z. Cement soars

Press, 4 October 1984, Page 26

N.Z. Cement soars

New Zealand Cement Holdings, Ltd, quadrupled its unaudited group aftertax profit in the year ended July 31, from $981,000 to $3,973,000, the directors announced yesterday. At the half year, when profit was reported to be $2.3 million, the directors explained the huge increase as the result of increased share of a static market.

They said then that sales rose 22 per cent because the completion of new North Island depots allowed the company to raise its market share.

However, since then certain rationalisation moves for the industry have been proposed.

For the full year turnover rose 24.5 per cent to $70,556,000, and group operating surplus more than

doubled to $16,383,000. Other income, at $550,000, and export tax credit, of $1,158,000 (last year, $865,000 and $1,000,000) took this figure to $18,091,000.

After deducting $10,252,000 for lease and interest charges, depreciation, and other expenses (1983 — $8,692,000) and charging marketing and development costs — including those previously deferred — of $3,392,000 against profit and loss, $4,447,000 was left compared with $1,739,000 last year.

The provision for tax was $212,000 lower at $317,000, and minority interests, at $157,000, took $72,000 less. The directors transferred $1,125,000 from revaluation reserve (last year,

$1,082,000) to make the bottom-line profit figure $5,098,000 — 2.5 times last year’s $2,063,000. The directors say that the tax provision relates to deferred tax and a transfer from future tax benefit account. Because of investment and tax depreciation allowances, and other deductible items, no tax is payable for the current period.

Cement sales for the 12 months ended July 31 were 510,()00 tonnes compared with 435,000 tonnes in the previous year, an increase of 17.2 per cent. At the annual general meeting, to be held on November 21, the board will recommend a final dividend of 7.5 c a share (unchanged) payable from revenue on that date.