Fletcher Profit 19.8p.c. Higher

Press, Volume CVI, Issue 31110, 13 July 1966, Page 13

Fletcher Profit 19.8p.c. Higher

(Nso) Zealand Press Association) AUCKLAND, July 12. Consolidated net profit of Fletcher Holdings increased £199,139, or 19.8 per cent, to £1,204,944 in the year to April 30, after a rise in turn-over by £3,041,960, or 8 per cent, to £40.8m.

The increases were spread reasonably evenly over all activities in the face of increasing competition. After last year’s issue, earning rates are slightly lower. Turn-overs were: construction, £12.8m (last year £13.2m), steel and engineering £5.9m (£4.5m), manufacturing £4m (£3.5m), builders’ supplies £5.9m (£s.lm), timber £11.4m (£10.6), land development and miscellaneous £o.Bm (£o.Bm). Investment in companies, other than subsidiaries in which the group holds a 10 per cent or more interest, increased from £3,277,786 to £3,304,010, the chairman (Sir James Fletcher) says in the report. The group’s share in the profits of these companies more than doubled from £249,255 to £572,889, of which it received £187,526 (£150,976) in dividend.

Gross profit of £3,325,253 was up £339,718, and with other income brought the total to £3,534,516, or £380,654 more. Expenses at £362,940 were up £21,395, depreciation £745,020 (£197,962 up), forest

depletion at £248,813 (£14,949 down), tax £928,614 (£39,077 more).

Dividend takes £810,441 or £225,419 more, and preference dividend £40,500 (no comparison for last year). Special depreciation of £186,363 was claimed for tax purposes but not written off. The net tax saving of £69,125 has been added to the deferred tax provisions. The balance-sheet reflected the recent share and debenture issues, which enabled strong expansion of fixed assets and improved liquidity. In his review, the managing director (Mr J. C. Fletcher) says that in achieving the sixth successive record, increased efficiency made a major contribution. Tangible benefits were now being received from long-term investments both inside and outside the group.