Mogal reports $2.9M profit

Press, 24 May 1985, Page 10

Mogal reports $2.9M profit

PA Wellington The freight group of Mogal Corporation, Ltd, has reported an 11.6 per cent consolidated group profit before extraordinary items of $2,911,000 ($2,608,000) for the year ended March 31. Extraordinary items of $235,000 ($274,000) boosted the profit to $3,146,000 ($2,882,000). Tax was $1,256,000 ($1,459,000). Gross turnover for the year was $119,460,000 ($98,352,000), up 21.5 per cent.

The final dividend will be 7.5 c a share (15 per cent), tax free, making a total dividend for the year of 10c a share.

Mogal’s managing director, Mr R. H. Fisher, said the year had seen good performances from the export related companies — Mogal International, Mogal Coolstores and Mogalair —

together with a very pleasing result from the group’s South Island operation, the Burnett companies of Ashburton.

However, this area was very dependent on the farming sector which had felt the adverse effect of the drought in the area, rising costs (including increased road user charges and high interest rates).

Mr Fisher said Commerce Commission approval had been received for Mogal’s 100 per cent acquisition of Hirepool Auckland, Ltd, which, if added to Carlton Cranes, Ltd (50 per cent), and Chep Handling Systems, Ltd (27 per cent), made Mogal one of the largest operators in the hire industry in New Zealand. It was necessary to divest Mogal’s shareholding in New Zealand Heritage Park Ltd.