G. FINANCE PLANS

Press, Volume CV, Issue 30979, 8 February 1966, Page 21

G. FINANCE PLANS

More Mergers Likely

At least two associated finance groups are negotiating to merge with General Finance, Ltd., Wellington financier, says the chairman, Mr R. E. Savage, in his review with the annual accounts. This could further substantially increase shareholders' funds during 1966, he says. Group profit rose £22,324 or 79.3 per cent to £50,458 in the year to October 31; this was reported earlier. Dividend has been raised from 8 to 81 per cent, taking £12.948 more at £33,757.

Shareholders’ funds rose £135,418 to £498,854 during the year, and earning rate on average funds increased from 10.6 to 11.7 per cent. Earning Rate

A special placement of 200,000 in 20s shares with the National Bank of New Zealand, Ltd., and two share exchanges with other finance groups, have lifted capital by £116.775 to £452,089. Earning rate on average capital increased from 11.5 to 12.8 per cent. The major increases in the company’s investments during the year have been in share investments and advances, says Mr Savage. Investments at cost rose £209,813 to £420,253 and for the first time there were investments in short-term Government stock of £75,000. Fixed assets are £6664 higher at £164,709 and liabilities are £821,298 up at £2,050,437.