PROFIT DROP BY M.C.P.

Press, Volume CIV, Issue 30783, 22 June 1965, Page 19

PROFIT DROP BY M.C.P.

£7315 Fall To £10,332 (N.Z Press Association) DUNEDIN, June 21. A net profit of £10,332 was made by M.C.P., Dunedinbased biscuit and confectionery maker, for the year ended March 31—a drop of £7315 on the previous year’s profit. Although the gross trading profit showed an increase at £248,142 (£220.654) a rise in administration and selling expenses from £166.681 to £201,082. in interest on mortgages and bank overdraft from £3014 to £4522 and in depreciation of fixed ass ts from £21,450 to £24,706 brought the tax paid net trading profit down to £10,332 compared with £14.509 for the previous year. Accumulated Profits Accumulated profits brought forward were £33,438 (£30,791) giving a total of £43,770 (£48,438), leaving accumulated profits to carry forward of £28,770 (£33,438) after provision for the proposed 6 per cent dividend. “Although gross trading profit was up because of a record turn-over, it was not up as high as it should be for two main reasons—a major machinery breakdown in the starch room and the high cost of sugar during the year all of which was not able to be passed on,” the chairman of directors (Sir Leonard Wright) said. The starch room machinery was replaced with the most modern available at a cost of £20,000. Shareholders’ Funds

Total shareholders’ funds are shown at £439,000 (£433,668), a net asset value a share of 8s 9d (8s lOd). Total net assets are £439,000 (£443,668). Directors recommend shareholders’ acceptance of an exchange of shares from A.B. Consolidated, a holding company incorporating Aulsebror’- and Company, Bycroft, and John Perry (N.Z.). Directors .said that with this amalgamation it was felt the company would achieve in a short period what it would otherwise take many years to do on its own.