N.Z.F.C. NET PROFIT UP

Press, Volume CIII, Issue 30540, 8 September 1964, Page 19

N.Z.F.C. NET PROFIT UP

Dividend Lift To 9 p.c.

Consolidated net profit of the New Zealand Farmers’ Co-operative Association of Canterbury rose 14.7 per cent to £160,220 in the latest ye.ar, according to a preliminary report. This result, on capital raised by a bonus issue during the year from £691,722 to £900,000, compares with £139,676 the year before.. Dividend is also higher at 9 per cent and reauires £Bl,OOO against the £74,613 needed for last year’s .8 1-3 per cent. Latest profit covers the dividend almost twice. Carryforward .of £184.619 would, more than cover dividend for two years at .the current rate. ! The latest figures for the year to July 31. are after depreciation £8256 higher at £61,419 and tax of £163,136, up £19,229. Earning rate on shareholders’ funds, £441.567 higher at £1,888,014, is 8.5 per cent, against 9.6 per cent last year. Earning rate on the higher capital is 17.8 per cent. A note to the accounts says the assets revaluation reserve of £146,973 came from writing up the company's land and buildings £350,608 to 90 per cent of Government valuation, less £203.625 required for last September’s two-for-seven bonus issue. Detailed information on the accounts had been released to the newspapers before balance sheets had been mailed to shareholders for the first time, the chairman (Mr G. Gibson) said yesterday afternoon. This was to help shareholders more easily understand the company’s position since the capital reconstruction, he said. The latest accounts show capital in 5s shares for the first time. Authorised capital is £l.sm against £lm. Last year’s balance sheet showed authorised capital made up of 300,000 10s first preference shares, 400,000 10s A preference shares, 400,000 10s B preference shares and 900.000 ordinary 10s shares. Revenue reserves are £632.258 against £580,880 last year. Transfer to general reserve is again £50,000, taking it to £500,000.