Company News FARRIERWAIMAK

Press, Volume CI, Issue 29938, 27 September 1962, Page 17

Company News FARRIERWAIMAK

Recovery In Profit

Cansoiidated net profit of Farrier-Waimak, Ltd.. Christchurch, recovered £979 of the previous year’s £2763 drop in the year ended June 30. The latest profit, of £ 13,254. . was reached after a drop of £87,357 or 23.1 per cent, in sales. Profit is reached after provision of £41,556 (up £8131) for depreciation and £12.037 (down £277) for taxation. It represents an earning rate of 10.4 per cent. (10.3 per cent, last year) on steady ordinary capital, and 7.61 per cent. (7.19 per cent.! on higher shareholders' funds. Steady dividends of 51 per cent, preference and 7 per cent, ordinary require £2875 and £7OOO respectively and carry-forward is increased by £3379 to £22.995. Commenting on the drop in sales, directors ascribe this to the lower level of activity in the building industry and to the smaller sum allocated to reading works in this area by the National Roads Board. "Anticipation of this early in the year led to a corresponding reduction in expenses" (which fell from £317.025 to £220.692). Competitive Trading “Having regard to the more competitive trading conditions, which would seem to be here to stay, we have strengthened the sales staff during the year.’’ Paid capital comprises 100,000 ordinary shares and 53,000 preference shares, all of £l. Shareholders’ funds rose £3379 to £174,140. Fixed assets fell £15,932 to £216,112 and investments were steady at £16,550. Reflecting the lower level of sales, current assets were reduced by £32,096 to £75,863. Work in progress fell £27.754 to £30.142. Current liabilities also fell sharply, bv £24.425 to £77,774; overdraft is £7264 lower at £21.631.

Long term liabilities are £2940 lower at. £32,060 and short term liabilities have been reduced by half to £24,551.