Dalgety Expects A Satisfactory Year

Press, Volume CVII, Issue 31539, 29 November 1967, Page 20

Dalgety Expects A Satisfactory Year

Dalgety and New Zealand Loan, Ltd, London, expects to continue producing satisfactory results in the future, says the chairman (Lieutenant-Colonel C. P. Dawnay) in the annual report.

Results in Australia should improve, as long as seasons and prices, especially those affecting wool, are reasonably favourable. There may be a wait before any real advance in profitability can be made in New Zealand.

As announced, the group profit rose £98.095, or 5.4 per cent, to £2,016,151 in the year to June 30. The dividend has been maintained at 12 per cent and requires £60,000 more at £1,287.464. After providing for the preference charge, £27,435 higher at £144,065, this is covered 1.4 times by the profit There were an unusually large number of difficulties in the latest year, many of which could not have been foreseen, says Colonel Dawnay. N.Z. Results Although seasonal fanning conditions in New Zealand were for the most part satisfactory, and stock was healthy the results showed some deterioration, in common with competitors. There was a sharp decline In New Zealand earnings because of the lower prices for the country’s chief primary exports. Big Loss The effects of the drought In the eastern states of Australia continued.

A substantial loss was made through financing a sheepskin trader in Australia who became insolvent. According to a report in the “Australian” the trader was W. E. Whitehead and Son, and Dalgety and N.Z. Loan was a creditor for about SAustlm. Another loss was made in Northern Ireland. Partly because of political changes, a total loss of £678,383 was made in a venture, of which £353,985 was written off against group profits retained in previous years. Colonel Dawnay says that insurance premiums in both Australia and New Zealand increased. The net result from this activity was satisfactory. Rural merchandise sales in Australia rose more than 12 per cent Overall results in New Zealand are satisfactory. Earning Rates The earning rate on average ordinary shareholders’ funds is down from 6.7 to 6.5 per cent while the rate on average ordinary capital is down from 17.4 to 17.1 per cent. The latest profit is after providing £72,588 less for depreciation at £1,246,621 and £269,857 less for tax at £1,539,675.

Ordinary shareholders’ funds are £2,186,512 higher at £29,550,500. Ordinary capital is £500,000 higher at £10,728,-

863 because of the issue as part consideration in the takeover of the Balfour Guthrie subsidiaries in North America, at a 16s premium a share.