Canterbury Frozen Meat Shows Fall In Profit

Press, Volume XCVIII, Issue 28795, 16 January 1959, Page 13

Canterbury Frozen Meat Shows Fall In Profit

The net tax-paid profit of the Canterbury Frozen Meat Company and subsidiaries for the year ended October 31, 1958, was £84,554. This compares with a tax-paid profit of £148,144 in the previous year. This profit is reached after provision of depreciation on fixed assets of £83,611 (£83,376 last year). In accordance with the provisions of the Companies Accounts (Freezing Works Companies) Exemption Order 1956, the amount of provision for taxation in New Zealand on the income derived during the financial year is not shown. The directors propose to pay a dividend of 6 per cent, on the preference Shares of the company, taking £6OOO. They also reCommend payment of a dividend of 10 per cent, plus' a bonus of 2J per cent, on ,ordinary shares, taking a further £65.126, Last year’s dividends wdre the same. The consolidated profit and loss account shows a consolidated profit for the year, after deduction of working expenses, estimated taxation and directors’ fees, of £120,635 (£172,327). Income from interest and dividends total £4760 (£5164). Profits applicable to outside shareholders in subsidiary companies, which are deducted from the profit figure, are shown at £687 (£1479), and profits retained in the accounts of subsidiary companies, another deduction from the consolidated profit, are £40.154 (£27,868). The consolidated balance sheet shows current assets of £1,458,944 compared with £1.540,624 the previous year. This figure is made up of stock at works, value of interests in consignments unrealised and general stores £885,131 (£992.450), sundry debtors and advances to owners of meat £218.572

(£103,089) and cash at bankers and in hand £355,241 (£385,585). Current liabilities are £1,014,957 (£962,972). These include trade creditors, provision for taxation and clients’ and other balances £943,381 (£912,910) and dividends proposed £71,126 (£50,062). Investments are £56,393 (£31,114). This figure takes in local body stock £2OOO, the same as last year, and other investments £54,393- (£29,114). Mortgages and other loans to employees stand at £58,600 (£50.794). Fixed assets are valued at £1.118.759 (£962,951). These include freezing works £892,549 <£737,763), shops and bacon factory £76.557 (£80.726). offices and houses £97.189 (£94.321) and motor vehicles £52,464 (£50,141).

Paid-up capital of the company is £623.163 (£619.110) Total capital and reserves are £1.669,530 (£1,610,680). Capital reserve is £34,594 (£31,730). Revenue reserves are £1,011,773 ‘ £959,840), including general reserve £185,000, insurance reserve £90,000, buildings and plant reserve £250,000, contingency reserve £270.000, and undistributed profits carried forward £216,773. compared with £164,840 last year. In his annual report to shareholders, the chairman (Mr John Deans) said the high opening schedules f season turned but to be quite unrealistic and with falling prices for meat, wool and pelts, the early purchases showed heavy losses and to the end of February the falling markets were not adequately reflected in the overall schedule for lamb. “However, . an increased through-put at the works, showing a reasonably satisfactory working and processing return, was largely responsible for the year’s result,” he added.