Company Overdrafts Rise By 35 p.c.

Press, Volume CII, Issue 30113, 23 April 1963, Page 19

Company Overdrafts Rise By 35 p.c.

Company bank overdrafts increased by 35 per cent. • £9.3m) in the 1961-62 year, compared with the increase for the 1980-61 year of 7 per cent. (£l.7m), according to New Zealand public company financial statistics for 196162 published as a supplement to the Reserve Bank Bulletin.

More than 60 per cent, of the increase occurred in the accounts of four groups, meat processing, forestry and wood, mainly wholesale, and stock and station agents. The gradually rising trend in amounts owed to sundry creditors continued in 196162. but the increase was smaller than in the previous year.

The increases in tax provisions were not as large as in 1960-61, because of the generally smaller growth of net profits. Mortgages and debentures as a source of finance were used more during the year under review than for some years, but of the increase of £9.4m more than half occurred in two groups, forestry and wood, and stock and station agents. For most other industries, the use of mortgage and debenture finance was in line with previous years. Equity capital raisings, for cash or otherwise, were also greater than for a number of years. Half of the total of £ 13.2 m was in three groups—beverages, forestry and wood, and printing and publishing, each over £lm, with equity capir ta' of the metals and machinery, and stock and station agency groups each increasing by £.Bm. Cash Balances Cash and bank balances were generally smaller than in the previous year, but the value of stocks increased by £ 14.4 m. Some increase occurred in all industry groups except one, with the greatest amounts being in forestry and wood £2m, drugs and

chemical* £l.2m, construction £l.9m, mainly wholesale £l.6m, stock and station agents £l.Bm, and mainly retail and department stores, £l.4m. Sundry debtors also Increased. the industry groups showing the greatest rises being forestry and wood £l.lm, mainly wholesale £l.4m, end stock and station agents £?JSm, including secured advances.