Midland in profit for half-year

Press, 7 April 1979, Page 18

Midland in profit for half-year

Midland Coachlines, Ltd, increased group revenue 17.5 per cent to S6.IM in the six months to December 31, and this enabled the company to return a profit on its first six months for only the second time in its history. Last year the company made a loss of $23,000 during the first six months, but it made a profit of $7400 in the latest half-year. There is little relationship between the group’s halfyear and anual results, because of the marked seasonal nature of the tourist industry.

“Although the tourist industry continues to have great potential for New Zealand there are a number of inhibiting factors to immediate growth. These include the uncertainty of the impact of new airfare structures, the lack of tourist standard accommodation, and the adverse publicity resulting from fuel restrictions.

“This year the growth may be modest rather than spectacular, but Midland has a sound base from which to take advantage of the opportunities tourism has to offer,” the directors say. An unchanged interim dividend of 5c a share will be tax-tree in the hands of shareholders. Hertz increased revenue, despite a decrease in tourist numbers over the previous year, and coachlines also increased revenue despite competitive pressures and the fact that demand for coach tours (particularly from Australian tourists) had not recovered to 1976 levels.

Negotiations were recently completed to merge the Merv Clarke express parcel service with a national organisation of courier operations, and the new Midland subsidiary now controls more than 80 express parcel and courier vehicles throughout the country.

Although trading conditions have been difficult, the coachworks has secured a number of major contracts for coachbuilding, and associated activities as well as continuing to produce coaches ifor the Midland fleet.