Company News KAURI TIMBER YEAR

Press, Volume C, Issue 29674, 18 November 1961, Page 17

Company News KAURI TIMBER YEAR

£351,929 Loss; No Div. (N.ZJ’.A.-Reuter —Copyright? MELBOURNE, Nov. 17. Kauri Timber Company, Ltd., will not pay an ordinary dividend for the year to August 31 after incurring a £351,929 group loss. The loss—the second by the company since 1932 compares with a group profit of £355,647 in the 1959-60 year. The loss follows the depression in the building industry, particularly in the housing section, following the Government's mefjures a year ago, directors say. Current trading has continued to be adversely affected and directors cannot foresee a return to profits before the second half of the 1961-62 year. Directors point out that the latest result is after selling substanially all of the group's New Zealand interests to the Fletcher Trust and Investment Company, Ltd. N.Z. Dividends These are excluded from the latest figures and, directors say, trading has benefited only to the extent of dividends received from New Zealand subsidiaries. These points should be borne in mind when comparing the loss with the previous profit which included the company’s interest in the profits of all New Zealand companies, they’ say. Directors will not recommend a final dividend. Interim dividend also was omitted early in the year. Last year, the company paid an 8 per cent, ordinary dividend—the rate paid since the dividend' was reduced following the previous loss in 1956-57. » Taxation The result is after £8527 (previous £354.009) tax and £293,464 (£473,289) depreciation. The sale of the New Zealand interests resulted in “a most substantial improvement in the company’s liquid position,” directors add. (Fletchers paid about £1,900,000 to Kauri for the interest in June this year). The liquidity will allow greater flexibility of operations in Australia, they add. However, it wil 1 reduce group reserves by £493,445 — the capital loss incurred on the sale. After the loss and certain other adjustments, group reserves will be £2.606,095 at August 31, compared with £3,440,754 at August 31. 1960.