Manthel’s board optimistic

Press, 23 July 1986, Page 36

Manthel’s board optimistic

The outlook for Manthel Holdings, Ltd, must be viewed with cautious optimism, says Mr R. A. N. Manthel, the chairman of the motor dealer, in the report for the year ended March 31. “We are seeing a positive effect on sales pending the Introduction of the

goods and services tax, and the easing of interest may have an effect on hire-purchase sales.” Major changes were taking place in the motor industry. Increasing numbers of built-up cars were being imported, to the advantage of Manthel’s. “We can expect the deregulation of the oil industry and the effect of the new Commerce Act on franchise agreements will have a positive effect on the industry.” Mr Manthel says the company is in a strong financial position with a current ratio (current assets — current liabilities) of 3.1 to 1. “Low stock levels and the Injection of $920,000 in cash from last year’s share issue have contributed to this position.” The full effect of motor franchises acquired last year would become apparent in the 1986-87 year. Commenting on the drop in pre-tax profit (previously reported), Mr Manthel said: ”... This

result compares favourably with the last few years and is considered satisfactory when extra cost factors such as high interest rates and fringe benefit tax are taken into account The report shows that stocks of new and used vehicles fell from $6,240,000 a year earlier to $3,348,000 at March 31. The total amount of hire-purchase receivable at March 31 was $2,075,000, compared with $1,420,000 a year earlier. The net tangible asset backing per 50c share are valued at $3.34, compared’ with $3.50 a year earlier (before the share issue). The board recommends a final dividend of 6c a share, bringing the total dividend for the year to 10c a share.