Potential in waste

Press, 2 December 1985, Page 40

Potential in waste

Waste Management N.Z., Ltd, formerly Carbonic Ice, Ltd, runs the only comprehensive chemical treatment plant in New Zealand, and it shows much potential, says the chairman, Mr R. Calvert, in the annual report. The group acquired Waste Management (Auckland), Ltd, in July to secure the group’s trading in a specialised service of liquid waste and hazardous waste treatment, plus chemical disposal.

The result of Carbonic Industries, Ltd, was disappointing and although current orders and trading are satisfactory, steps are being made to improve the company’s performance. Carbonic Industries is at present working on its single biggest order for a carbon dioxide collection and processing plant, to be delivered toAuckland.hesays. The total group net profit improved 32.3 per cent in the year to August 31, compared with the previous corresponding period. Included in the latest result was a capital profit of $2073 (nil previously). Group sales have not been disclosed, which earns the directors a tag in the auditors’

report. Previously, the company, as Carbonic Ice, did not disclose its sales because the directors considered to do so gave its competitors knowledge of the company’s business. But with the company now owning a number of waste disposal companies it would appear that competitors would be unable to differentiate between waste business sales and turnover from carbonic diox-, ide trading. The profit was after providing $308,342 for tax ($112,057 credit previously), and $211,903 more for depreciation at $271,322. A recommended final dividend of 5c a share gives a

steady annual rate of 8c a share (16 per cent). The dividend requirement is $337,909 and it is covered 2.2 times by the profit. Shareholders’ funds rose $4,505,639 to $7,654,172, including ordinary capital up $1,623,595 to $2,720,785 after the cash issue in July and the placement of 2.15 M shares to the vendors of the Bryant group of companies in May. Working capital fell $1,888,421 to $504,629, partly because creditors more than doubled to SI.7M and deposits and advances rose from $20,000 to SI.7M. The current ratio dropped from 3.1 to 1.1 to one.