A. Bisley profit knocked by freeze

Press, 10 October 1984, Page 29

A. Bisley profit knocked by freeze

Net profit slumped 49.7 per cent for A. M. Bisley and Company, Ltd, the Hamilton-based agricultural machinery manufacturer, in the year to June 30. The directors yesterday reported a net after tax profit of $655,280 down from $1,304,052 in the preivous year. They blamed the profit fall on the costs of maintaining adequate stocks of high value machinery, and spare parts needed to service A. M. Bisley’s market during a period when these costs could not be recovered because of the price freeze. However, after devaluation the company, was experiencing a buoyant demand for its wide range of equipment, the directors said. “Sales for the last three months are substantially ahead of the previous year and are expected to be well maintained throughout the year. This should result in a satisfactory reduction of stock levels.” The directors recom-

mended a final dividend of 8c per 50c share (16 per cent) to be paid tax free in shareholders’ hands from share premium reserves. An interim dividend of 5c per share (10 per cent) has already been paid. Shareholders will therefore receive a total dividend of $883,470 equal to 26 per cent (13c per share) payable after the annual meeting to be held on October 30. In the year to June 30, the company’s sales lifted 6.8 per cent from $21,036,676 to $22,481,110. Gross profit was

also up — 6 per cent from $7,203,997 to $7,643,071.

The company provided for taxation of $38,483 in the latest year, compared with $259,198 previously. The directors said they regarded the year as an “aberation where a number of unrelated problems all fell.” They had confidence in recommending that dividend be maintained at the same rate as last year, and expected a return to a more satisfactory level of profit in the new financial year.