FALL IN PROFITS.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 4

FALL IN PROFITS.

KAIAPOI WOOLLEN.

DIVIDEND RATE REDUCED,

TRADE SETBACK; HIGH TAXES

(By Telegraph.— Special to "Star.") CHRISTCHURCH, this day. The Kaiapoi Woollen Company, Limited s gross earnings dropped 7 per cent in the year ended July 19, 1938, compared with the figures of the previous year. Net profits were down 32 per cent and the ordinary dividend has been reduced from o to 4 per cent. wi?r £oloo] in>rS ,r re £86 - 631 ' com Pared with £93 094 111 the previous period, and net pioht £12,643, against £18.417. 1 in, eis *° taxation and general reserves which last year took £2500, are not recommended 111 the report just issued. 10,1 th,s year takcs £5000, against sj /000 a year ago. The directors report states that trading conditions in the early part of the vear were reasonably good, but considerable recession occurred in the second half. This factor, together with a heavy increase in taxation and working costs curtailed the surplus. Land and income tax requirements amounted to £11,709, which is almost sufhnent to pay 5 per cent on the ordinary capital of the companv. Stocks at £204,226 are £32,332 higher than a year ago, while properties and plant are increased by £18,381 This is plant' accounted for by additions to