Electrocorp $1.4M profit

Press, 23 July 1987, Page 25

Electrocorp $1.4M profit

PA Wellington The electronics group, Electrocorp Holdings, Ltd, has reported a net profit after extraordinary items of $1,499,280 for the 10 months ended March 31, 1987.

Electrocorp Holdings was formed in May, 1986, by Tag Corp, Ltd, to acquire companies involved in the electric light industry.

Companies now in the group include Arnold and Wright, Ltd, Alpha Lighting Group, Ltd, Lighting Products, Ltd, Freelite NZ, Ltd, Anglo Engineering, Ltd, and Santon NZ, Ltd.

The profit figure includes the results of subsidiaries for periods ranging from 11 to 17 months.

Turnover was $26,162,284, profit before tax was $2,068,489, and tax took $1,048,085, leaving an operating profit of $1,020,404.

Extraordinaries added $478,876 to give a bottom line of $1,499,280. Although turnover was In line with projections, net manufacturing and

trading profit fell slightly below budget, the directors said.

The tax-paid profit was reduced further by the higher than expected taxation provision. Property revaluations have been taken directly on to the balance sheet, not through the profit and loss account. Revaluations totalled $990,000 or 5.5 c a share. At balance date, shareholders’ funds stood at $9,835,961 representing net assets of 54.6 c a share after deduction of goodwill on consolidation. The figures for the period include the establishment costs and reorganisation costs of the subsidiaries.

While the reorganisation of the company has not been completed, the benefits of the mergers are already showing up in current trading, the directors said.