Motor Traders ahead but cautious

Press, 7 April 1979, Page 19

Motor Traders ahead but cautious

PA Auckland Motor Traders (NZ) Ltd, increased the net profit 45.6 per cent to $332,000 in the six months to January 31, but the directors remain cautious in their predictions for the second half-year.

They say it was difficult to forecast trends in the company’s business activites for the remainder of the year.

Improved efficiency of the latest period was heartening, and planned investments would make a positive contribution, but they could not lose sight of the economic climate, and the current oil crisis, the directors said. Discussions were now taking place concerning the company’s entry into commercial finance, and it expected that an announcement would be made soon.

Sales for the half-year were 4.3 per cent ahead. The improvement in profit rise came from the restructuring of the company by the closing and merging of several warehouses, and continued restraints on expenses.

Increased turnover by Ace Traders, Ltd, was achieved

through the relaxation of price controls, and increased market penetration. MTL Manufacturing Company, Ltd, was affected to a large extent by the efforts of Ace Traders to reduce warehouse stocks, and the increased competitiveness in the Australian market.

Export sales for the halfyear were down 30 per cent.

The latest result was after depreciation $12,500 lower at $172,800. No tax was pay-

able, compared with $15,000 previously. Under current conditions, and including export incentives, the company would be able to earn about $420,000 before tax provisions were necessary', the director said.

A steady 6 per cent interim is payable on April 30. Last year the company held the annual rate at 14 per cent after net profit fell 63.4 per cent to 8183,410.