N.Z. FARMERS’ FERTILISER

Press, Volume CII, Issue 30191, 24 July 1963, Page 19

N.Z. FARMERS’ FERTILISER

Net Profit Up 58 P .c. (N.Z. Press Association) AUCKLAND, July 23. Record sales of fertiliser in the year to May 31 enabled New Zealand Farmers’ Fertiliser Company, Ltd., Auckland, to recover from last year’s setback and lift consolidated net profit by £ 103.681, or 58 per cent., to £2B2,soo—its highest ever. Sales totalled 517,416 tons compared with 461,705 tons in 1962 and nearly 500,000 tons in 1961. In spite of the unfavourable sprimg weather for topdressing, the output of fertiliser throughout New Zealand was a record, the chairman (Mr J. B. Johnston) says in the annual report.

Gross trading profit increased £185.405 to £1,589,570 —slightly below the 1961 record of £ 1,601,474 —while general expenses decreased £6548 to £826,460. Depreciation

The result was struck after providing £11,063 less for depreciation at £184,884 and £100,675 more for taxation at £285,759, and after adding minority interests’ £2245 share of losses by subsidiary companies (£6lO deducted last year for profits). Profit represented 9.3 per cent, on average ordinary funds an<j 18.3 per cent, on average ordinary capital, compared with 7 per cent, and 12.7 per cent, respectively last year, when profit dropped 32.8 per cent, through abnormal circumstances.

The steady dividend of 9 1-6 per cent, requires £149,714 (£123,292 last year). Preference charge is again £8250.

Depreciation has been written off at the full scale of rates allowed. Stocks “Conservative”

Stocks have been carefully checked and valued on a conservative basis, Mr Johnston says.

The consolidated balancesheet reflects the increase in business and the raising of additional capital, resulting in improved liquidity.

Shareholders’ funds have risen £465,678, to £3,335,922, including capital £272,208 higher at £1,783,247 (£150,000 preference). The increase in capital was brought about by last year’s one-for-flve issue at a premium of ss, which also caused a £68,053 rise in share premium reserve to £151,958.

Consolidated Brick. Recommended annual ordinary dividend is 8 per cent, (unchanged) With the Anal preference dividend of 2j per cent, the ordinary dividend is payable on August 29 ex August 15. The ordinary dividend does not apply to the 1961 Issue shares.—(P.A.)

Wellington Gas.—An Interim dividend of 3 per cent, (unchanged) is payable on August 1. ex July 27. Last year the final payment was raised from 3 per cent, to 3J per cent.—(P.A.)