Australian purchases lift Ajax result

Press, 24 February 1987, Page 23

Australian purchases lift Ajax result

PA Wellington Ajax McPherson, Ltd, has reported an unaudited net profit, after tax, of $3,723,000 for the half-year ended December 31, 1986, a 127 per cent increase on the previous corresponding period ($1,643,000)-. An unchanged interim dividend of 6 cents an ordinary will be paid out of tax paid revenue on April 1. However, because of the expansion of the group by the acquisition of the Australian companies, Ajax Fasteners and Ajax Pressings, on December 31, the results of the corresponding period last year are not strictly comparable.

Turnover was up 233 per cent at $69,970,000 ($20,984,000). Profits of New Zealand fastener operations were

adversely affected by the depressed economy, the directors say. Profit growth of Australian fastener operations has been satisfactory. Ajax Pressings (Australia) was adversely affected by a downturn in the automotive market, but recent increases in forward orders from other market sectors are encouraging. Recent Government action in providing-easier entry to New Zealand by importers of cutting tools, with the value of the New Zealand dollar has resulted . in depressed market shares and lower margins. Patience and Nicolson N.Z., has not performed well because of market share losses in New Zealand, Australia and Canada. Unfortunately, retrenchments were necessary.

During the half-year, the

company completed the acquisition of the Pryda Group of Companies. This business manufactures and markets timber fasteners and fastening systems in Australia, New Zealand, and Malaysia. The directors say it is meeting expectations. Directors and management expect profit improvements, as markets are expanded, productivity improved and benefits from trans-Tasman rationalisation occur. However, the major portion of profit has traditionally been made in the first half of the company’s financial year and this trend is expected to continue, the directors say.

Mr Robert Trenberth, the company’s chief executive, has been appointed to the board filling the vacancy created by the recent retirement of Mr G. W. Patton.