COX BROS. LOSS

Press, Volume CVI, Issue 31152, 31 August 1966, Page 20

COX BROS. LOSS

I.lm Dollar Set-back

(N.Z. Press Assn.—Copyright)

MELBOURNE, Aug. 30.

Cox Brothers (Australia), the softgoods and clothing groups, for which a receiver and manager has been appointed, incurred a larger loss of about I.lm dollars in the year to July 31. In 1964-65 the company incurred a loss of 658,878 dollars.

Directors indicat s the loss in a letter to T. and G. Nominees Pty., Ltd., issued today. They say the net result of the trading activities of the company and its guarantor corporations in the year to July 31, is estimated to be a trading profit of about 1.3 m dollars.

But after providing for all interest charges, this profit will be converted into a net loss of about I.lm dollars. Trading Profit

Trading profit of the Cox group last year 'V.s 1,648,566 dollars and interest took 2,357,096 dollars. Cox Bros, incurred a loss of 350,504 dollars in 1963 and this grew to 4,005,808 dollars the following year. Last year the company’s 24m dollars in deposits was converted into 8 per cent debentures which were to be repaid in five equal annual instalments fom 1968 to 1972.

But the company’s interest bill difficulties continued and a new reconstruction scheme has now been proposed. Under this scheme an English group, Ralli Bros. (Bankers), Ltd., would put 2m dollars into Cox Bros, after a big write-down in the face value of debentures and shares.

If the scheme is adopted Ralli Australia will own 60 percent of the company’s equity capital.