INNES INDUSTRIES PROFIT UP 21 P.C.

Press, Volume CIII, Issue 30562, 3 October 1964, Page 14

INNES INDUSTRIES PROFIT UP 21 P.C.

(New Zealand Press Association)

AUCKLAND, October 2.

Consolidated net profit of Innes Industries, Ltd., Auckland, in the year to August 31 was £86,391. This was £15,102, or 21.2 per cent, up on the year before, but the position is complicated by the effects of the merger deal between New Zealand Breweries, Ltd., Schweppes (Australia), Ltd., and Innes Industries which make comparisons difficult.

In the course of the merger the physical assets of C. L. Innes and Company, Ltd. (previously a whollyowned subsidiary of Innes Industries) were merged with those of Grey and Menzies. Ltd. (previously a wholly owned subsidiary of Schweppes N.Z., Ltd.), to form Innes Tartan, Ltd. Innes Industries and Schweppes N.Z. have eaual shareholdings in Innes Tartan. At the same time Contract Bottlers, Ltd., with the same ownership, was set up to own and , operate manufacturing and warehousing facilities at Mt. Wellington. In the Auckland metropolitan area Innes Tartan and Schweppes N.Z. will present their products independently from separate warehouses leased from Contract Bottlers. This firm will bottle for both. In the Auckland provincial

areas Innes Tartan will own branch plants at Hamilton, Paeroa, Rotorua, Whakatane, Tauranga, Taumarunui, Kaitaia, and Whangarei with warehouses at Te Kuiti and Thames. Innes Tartan will also ad as. franchise bottlers and merchandisers for Schweppes N.Z. products. The Northern Bottling Company (which has the Coca Cola franchise) remains a subsidiary of Innes Industries, but Schweppes N.Z. has a minority shareholding and Schweppes (Australia) and New Zealand Breweries each have small interests. This company will have a separate plant at Mt. Wellington and also plants at Whangarei and Hamilton.

Because Innes Tartan (formerly C. L. Innes) is no longer a subsidiary, the accounts as well as the actual 1963 figures show adjusted 1963 figures with that company included as an associated company only. On this adjusted basis net profit in 1962-63 was £65,949 and the latest figure shows a rise of 31.0 per cent. The latest profit was struck after providing £24.322 less for tax at £42,862. The 1963 adjusted figure is £51,034. Depreciation allowed is £31,061, compared with £75,102, or £31,025 on an adjusted basis. It includes £4392 special depreciation. Also excluded from the profit are minority interests of £14,433 (£13,597 last year). As announced, ordinary dividend has been raised from 7 to 8 per cent, taking £6OOO more at £48,000. The preference charge is again £5OOO. A transfer of £30,000 (last year £35,000) has been made to general reserve. The carry-forward is £62,183.