J. Wattie Expects Successful Year

Press, Volume CVI, Issue 31315, 10 March 1967, Page 16

J. Wattie Expects Successful Year

The volume of production and sales already achieved by J. Wattie Canneries, Ltd., Hastings, during the present financial year, which will end on July 31, indicates another successful year for the company, says the chairman (Sir James Wattie) in a prospectus for a debenture issue of £600,000.

The issue, of which £300,000 has alreadybeen taken firm by the underwriter, Daysh, Renouf, and Company, will open on March 20 and close on May 31, unless earlier subscribed.

Interest rates are: seven years 6 J per cent; 10 years, 6j per cent; 15 years and 20 years, 6 7-8 per cent; 25 years, 7 per cent No over-subscriptions will be accepted. Apart from the £600,000 being offered, a further: £235,000 In debentures will be offered to Henry Jones (1.X.L.), Ltd., Melbourne, to replace a similar amount of debentures held by them. Another £75,000 in debentures will be held for issue later, at the discretion of directors.

In 1964, Wattie acquired all the New Zealand interests of Henry Jones.

The issue will provide funds for the general expansion of the group’s activities and in particular, provide further manufacturing and warehousing facilities. The trustee is the New Zealand Insurance Company, Ltd. The auditor’s report shows that each £lOO of debentures will be secured by £358 in tangible assets. Exports

In his report, Sir James Wattie says that the export side of the business is growing at a comparable rate to the local market The additional sales have enabled the company to

obtain the benefits of largescale production which are not often available to manufacturers catering for the New Zealand market alone. Tax Savings These export sales enable Wattie to obtain substantial tax concessions through the Government export incentive scheme. In the current year the volume of exports should further expand. Wattle’s policy has been to advance the devolpment and diversification of the operations and this has proved overwhelmingly successful in the growth of the business, says Sir James Wattie. Sales rose by more than £1.5 million last year and this demonstrates the capital and planning required to finance such expansion.

Further Expansion However, new opportunities show the need for further expansion. Besides the normal cash flow available from retained profits and depreciation, the heavy capital expenditure to finance the major expansion programme, additions to land, buildings and plant, and the financing of increasing turnover, has required the rearrangement of Wattie’s finance by raising the recent share capital arid the present debenture issue, says Sir James Wattie.

The additional capital from these two sources will be about £1,250,000.

Wants Korman In Chevron

(N.Z. Press Assn.—Copyright MELBOURNE, Mar. 9.

Mr Stanley Korman was asked not to resign as director of Chevron Sydney Ltd. (receiver appointed), at the company’s annual meeting in Melbourne.

It is understood that Mr Korman had earlier indicated his intention to resign as chairman and director of Chevron to the company’s board.