STH. OTAGO FREEZING

Press, Volume CIV, Issue 30880, 13 October 1965, Page 23

STH. OTAGO FREEZING

Costs Reduce Profit (N.Z Press Association) DUNEDIN, Oct. 12. A sharp rise in depreciation and increased interest on mortgage was largely responsible for the reduced tax-paid profit of £86,510 of the South Otago Freezing Company. The accounts, for the year ended August 31. show that the tax-paid profit is down by more than £5OOO. Gross profit showed a slight rise from £257.365 to £258 982 Depreciation is up from £57.620 to £75.685 and interest on mortgage from £4500 to £9376. Dividend of 71 per cent, requiring £33.750. is recommended. This would allow a “plough back” of a further £50.000 to reserves, bringing the general reserve up to £440,000. The annual meeting on October 29 will consider splitting the existing 20s shares into 10s units, and increasing capital to £1.250,000 by the creation of Im ordinary shares of 10s each in 10s units. C.O.P. Plans Deb. Issue Cash Order Purchases. Christchurch - based finance and hire purchase group, plans a £150,000 debenture issue. A prospectus for the issue will be registered on Friday and terms will be from 7 per cent for 10 years to 6 per cent for two years. Underwriters will be Hamilton and Hamilton (incorporating J. B. Hindin) and Stock Exchange members have been authorised to act in the issue. An earlier debenture issue this year was over-subscribed by £lOO,OOO.