NORTHERN ROLLER YEAR

Auckland Star, Volume LXXIV, Issue 106, 6 May 1943, Page 3

NORTHERN ROLLER YEAR

DIFFICULT TRADING CONDITIONS "While the gross profit was slightly larger than for the previous year, the heavier taxation is responsible for the small amount of profit," said the chairman, Mr. Jas. B. Donald, reviewing the accounts at the annual meeting of the Northern Roller Milling Co., Ltd., this afternoon. Details of the accounts were published on April 16.. "On account of the heavier taxation, levied after last year's balance-sheet was completed, it was necessary to draw on our undivided profit to pay a small part of last year's dividend," said Mr. Donald. "For the year under review, after providing for the present rate of taxation, there was hardly sufficient net profit to pay a dividend of 3 per cent, but, having regard to the sound financial position of the mill, the directors recommend a dividend at that rate. We were subjected to a heavy increase in wages, without any chance whatever of receiving compensation in the price. The directors consider we should be compensated for the additional charges we have had to meet during the past 12 months. The company is working under difficult conditions, but all items are carefully scrutinised, and no expenditure is allowed unless it is justified. Our silo, which was started at the end of 1940 and which we had hoped to have completed over 12 months ago, is now practically finished. The silo is in use and we are finding it a great convenience. There still remains some machinery to be fixed, but the whole work should be completed by the end of next month. There is no doubt that the new building will be a great asset to our business, for, while, owing to present war conditions, we may not reap an adequate return from the expenditure immediately the directors feel certain that when the war is over and trade returns to normal the expenditure will prove to have been fully justified. "While I cannot advise that the prospect for the present year is brighter than for the past period, you can rest assured that the directors and staff are doing all they possibly can to meet the present trying time, and that no efforts will be spared on their part to make the present year a satisfactory one."