Capital Needs Of Forest Products

Press, Volume CIV, Issue 30811, 24 July 1965, Page 16

Capital Needs Of Forest Products

(New Zealand Press Association) AUCKLAND, July 23. The £2,065,768 raised in last year’s share issues and the conversion of and additions to debentures to an aggregate of £7.5m now being completed, will take care of the capital requirements of N.Z. Forest Products, Ltd., for some time to come, the chairman (Mr W. L. Wyber) says in the annual report.

This is also, in view of the increasing amounts in cash from retained profits and depredation. As announced, consolidated net profit in the year to March 31, rose £155,079, or 9.4 per cent to £1,808,293. This was achieved after an increase in sales by £1,297,000, or 7.4 per cent, to £18,918,000. In this review, Mr Wyber says the results are particularly pleasing as, in spite of increases in wages and many other costs, directors maintained their policy of stable prices for the major proportion of output. All mills operated to capacity. About 500 m log super feet were taken from the forests in the past year. By the early 1980’s the forests will reache their estimated maximum capacity of 800 m feet and to enable the company to expand thereafter, additional forest must be planned for in the near future, Mr Wyber says. The balance-sheet reflects the cash issue. An additional 50,000 shares were issued at a premium of 14s 4d in part satisfaction or purchases of land. Investments Investments include £885,902 in companies—an increase of £528,986 mostly brought about by the interest taken in N.Z. Paper Mills. Debtors are up £500,336 to

£2,475,781 and stocks £242,627 to £3,414,048. Creditors are £340,090 higher at £1,715,857. The over-all estimated cost of completing capital work in progress is £5,600,000, of which £4,500,000 was committed at March 31.