COMMERCIAL A.B. Consolidated Costs Higher

Press, Volume CVII, Issue 31409, 30 June 1967, Page 14

COMMERCIAL A.B. Consolidated Costs Higher

A. B. Consolidated, Ltd., the Christchurch biscuit and confectionery manufacturer, increased its trading profit by £154,584 in the year to March 31 but higher costs and depreciation charges resulted in group profit falling 4.5 per cent, says the chairman (Mr T. W. Perry) in the annual acounts.

As announced, the profit fell £7375 to £156,610 and covered the steady 5 per cent ordinary dividend requirement of £90,625, 1.6 times.

Production and marketing facilities of the group are fully capable of meeting and creating higher levels of sales provided import licensing cuts are not sustained for a lengthy period, says Mr Perry.

The output value of the factories rose £250,000 to £5,250,000 and all units contributed to the increase. Demand for the various types of foodstuffs marketed both in New Zealand and overseas continues to grow, he says. Auckland Mill Plans have been drawn up for a new mill at Otahuhu to

replace the existing Bycroft Mill in Shortland street, Auckland. Directors intend pressing ahead with this project as soon as the requisite approvals are received.

A mortgage has been arranged which should provide the balance of the finance required after expected realisations. Preference Capital Directors have no intention at present of exercising the right of redemption of the £200.000 in preference capital, Mr Perry says. Provision for depreciation is £16,664 higher at £124,916

while tax provision is £6150 less at £123,736. Shareholders’ funds are £72,253 higher at £2,480,684 and include steady ordinary capital of £1,812,500. Realised capital profits are up £17,047 to £26,020 from distributions by the subsidiary companies from pre-amalgamation reserves and are not available for distribution to shareholders as dividends.

Fixed assets are £38,908 lower at £1,812,918 and investments are up £25,995 to £37,952.

Working Capital Working capital is £63,327 higher at £714,037. Current assets are £7131 lower at £1,536,712 and include debtors £2007 down at £489,674 and stocks £4557 less at £1,045,891. Current liabilities are down £70,458 to £822,675 and include creditors £47,165 less at £276,633 and overdraft down £17,618 to £422,367.

1967 £ 1966* £ 1965 £ 1964 £ Profit 156,610 163,985 138,688 130,737 % Var. —4 5 + 18.5 +7.6 +15.4 Ord. Div. (%) 5 5 5 5 Amount 90,625 90,625 75,000 75,000 Cover 1 6 1.7 1.7 1.6 Ord. Capital 1.8m 1.8m 1.5m 1.5m EARNING RATES Av. Funds ’ .. 6 5 7.8 7.5 7.4 Ord. Capital 8.1 8.4 8.5 8.0 • 8 months trading M.C.P., Ltd.