MOSGIEL WOOL

Press, Volume CII, Issue 30287, 13 November 1963, Page 31

MOSGIEL WOOL

41 p.c. Fall In Profit (N.Z Press Association) DUNEDIN. Nov. 12. A reduction in the output from factories and an increase in distribution charges due to the high cost of distributing small lots of stock sales were the two principal factors which contributed to the 40 per cent reduction in profit this year by the Mosgiel Woollen Factory Company, Ltd, Tax-paid profit for the year ended October 6 was £24,506 —a decrease of £16,864, or 40.7 per cent on last year's figure of £41,370. While sales for the year were on a level with the previous year, the chairman, Mr R. Forsyth Barr, said in the directors’ report that a greater proportion of sales than usual was from stocks of goods built up in the previous financial year. Manufacturing profit this year was £224,557—a decrease of £19,705. After an allowance of £46.085 (£43.817) for depreciation on manufacturing fixed assets, gross profit was £178.472 (£200.445). Total expenses for the year are up from £117.075 to £130,466. Administration, selling and distribution charges of £94.481 are £9170. or 10J per cent, up on last year. On pre-tax profits of £47.006 (£83.370). provision for taxation is £23.500 (£42.000). With the reduction in dividends this year from 10 to 8 per cent, dividends will require £22,400. Total shareholders’ funds have risen from £667.462 to £667,763. The earning rate on shareholders’ funds dropped from 6.2 per cent in 1962 to 3.7 per cent this year. Total current liabilities are up from £338,716 to £360,895 largely as a result of the increase in overdraft from £192,293 to £224.078. Total current assets have risen from £554,194 to £559.723 Fixed assets have risen from £551,984 to £568,935.