Alex Harvey profit up 33 per cent

Press, 16 May 1985, Page 30

Alex Harvey profit up 33 per cent

PA Wellington Buoyant trading and recent acquisitions have helped Alex Harvey Industries, Ltd, to a 33 per cent annual profit increase to $50,644,000 ($38,014,000) for the year ended March 31. AHI is the subject of a full take-over bid by Carter Holt, but the AHI directors said they were making the profit announcement in the usual manner.

Group sales at $715 million ($521 million) were up 37 per cent. AHI said this was partly because of excellent trading, and also the inclusion for the first time of a full year’s operations of Henderson and Pollard, Ltd, six months of Smith and Smith, Ltd, and other smaller acquisitions made during the year. The result was achieved after providing $22,027,000 for depreciation and amortisation ($17,414,000), and before net extraordinary items written off during the period amounting to $617,000 ($2,611,000 cr). Tax was $34,376,000 ($21,557,000) and minorities took $9,615,000 ($4,560,000). Profit from associate companies added $987,000 ($1,959,000). Extraordinary losses, not included in the $50.6 million profit, were $617,000 (profits of $2,611,000).

Final dividend will be 6.scps T>lus a bonus dividend of 2cps, both tax free, to be paid on July 26. Books close on July 11. AHI said domestic sales by New Zealand and offshore subsidiaries rose by 39.9 per cent and manufactured exports from New Zealand topped $lOO million for the first time.

The export performance was sustained, by almost every AHI company in New Zealand and total exports rose 22.3 per cent over the previous year’s level. Receipts from offshore investments and royalties continued to show a significant increase.

Sales of building products in the New Zealand market were buoyant, spurred by the higher levels of new housing starts together with a very active home renovations sector. During the year the building products group acquired majority interests in Watkins and Starr Pty, Ltd, an Australian manufacturer of stainless steel products, and Cemac Commercial Interiors, Ltd, specialists in the construction and refurbishing of offices throughout New Zealand.

AHI said that both of these companies had an excellent trading performance.

Sales of packaging products were substantially ahead of 1983/84. Food, beverage and industrial markets generally enjoyed very positive growth, with demand from the primary industries at extremely high levels.

The investment programme for glass and metal containers previously announced was completed dur-

ing the year and the future outlook was favourable. Additional investment was also committed in the paper and plastics groups as part of an ongoing programme to re-equip divisions with the most appropriate technology available. Export sales of packaging products were very satisfactory.

AHI said the acquisition of Smith and Smith had added a new dimension to the diversity of the group and it was extremely pleasing to report the record results achieved by this company in the first year of ownership. Sales of glass exceeded expectations, and the increased marketing drive in both this area and the home decorating stores would ensure that the strength of this division was maintained. Henderson and Pollard had a successful year, with record domestic sales and an export performance which trebled the previous year’s achievement.