Northern Roller Profit Doubled

Press, Volume CI, Issue 29849, 15 June 1962, Page 12

Northern Roller Profit Doubled

(New Zealand Press Association)

AUCKLAND, June 14. The Northern Roller Milling Company. Ltd., Auckland, and its subsidiary, Fleming and Company, Ltd. more than doubled consolidated net profit in the year ended February 28. The latest result, £39.591, compares with £ 18,464 in 1968-61. The directors say that they are not complacent about the position as the return on funds employed is still far from satisfactory. Shareholders’ funds have increased from £1,282.513 to £1.383,316. Of this £100.803 increase. £48,085 is accounted for by previous provision for losses on and redundancy of current assets now brought to account and £16.117 written off in extra depreciation and credited to assets replacement provision. The earning rate on these funds is 2.9 per cent. The directors do not propose to make a bonus issue out of profits earned before March 31, 1957, as provided under Section 1448 of the Land and Income Tax Act. They state that any increase in capital of the company would result in a corresponding decrease in dividend rate so that shareholders would receive no increase in the amount paid. The directors attribute the higher profit to the expansion in trading operations and to greater efficiency resulting in savings in costs. Extra Depreciation

The latest result was struck after providing extra •depreciation as in the previous year, the total provision of £91.406 being £1344 lower. Provision for tax was £20.413 greater at £76.120. The sum of £8315 has been

added to the amount brought in, being shown as adjustments in respect of previous years. The unchanged ordinary dividend of 8 per cent, again takes £24.000 and the 31 per cent, preference payment £10.500. There are no other appropriations, the carry-for-ward being £13.406 greater at £193.976. Trading profit rose £39.925 to £213,500.