Consol, metal to $2M
A Brierley subsidiary, Consolidated Metal Industries, Ltd, has increased its interim profit before extraordinaries by 10 per cent to $1,976,000 ($1,780,000) for the six months ended December 31. In addition, an extraordinary profit of $147,000 (nil) boosted total interim profit to $2,123,000 (last year $1,780,000).
The comparative period was for six months ended September 30, 1984. CMI later changed its balance date to conform with the rest of the Brierley group, which holds 81 per cent of CMI. Turnover was $36.2M (S26M). Tax, including FBT, took $1,398,000 ($1,039,000).
The interim dividend will be 6.25 c a share, to be paid on April 11 and shareholders
will have the option of taking shares instead of dividends. Books close on March 27.
CMI said the directors regarded the profit as satisfactory, having regard to the prevailing trading and economic conditions.
Recent upgrading of the plant and the extension of the business base and development of subsidiaries- in Australia was expected to enable CMI to maintain the level of profit in the second six months.
In the present trading environment it was difficult to forecast too far ahead because of the general uncertainty of the economy and competition from imports.
The volatility of the New Zealand exchange rate had a serious effect on production
volumes through reducing op portunities for developing exports and increasing import prices. CMI said negotiations were under way for CMI to acquire 100 per cent of Hurricane Wire Products, Ltd, but at this stage no agreement had been reached. The acquisition had been approved by the Commerce Commission.
CMI, through a subsidiary company, also had an interest in Payzone Exporation, Ltd, which had a 17.5 per cent interest in Petroleum Prospecting Licence Area 38034. The exploration programme involved the drilling of six wells, including the Te Kiri-1 well. The licence area was well sited and near other licence areas where commercial discoveries had been made.
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Press, 28 February 1986, Page 16
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320Consol, metal to $2M Press, 28 February 1986, Page 16
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