Edmonds Influenced By Devaluation

Press, Volume CVII, Issue 31551, 13 December 1967, Page 25

Edmonds Influenced By Devaluation

The last few months of the financial year, which will end on March 31, of T. J. Edmonds, Ltd, the Christchurch food group, will be influenced by devaluation, says the chairman (Mr C. W. Evans) in the directors’ interim report to shareholders.

This influence will be felt in both exports and in the domestic market, where there will be increased costs in imported ingredients and in locally purchased goods and services.

However, directors report that the results for the halfyear to September 30 must be regarded as satisfactory. They have declared a steady interim dividend of 5 per cent, ex December 16. Last year’s total dividend of 12} per cent was covered 1.7 times by the profit of $98,346.

The company's endeavours to increase its export activi-

ties have been effective, says Mr Evans. This was expected to bring tax benefits. However, if export incentives are abolished, the company’s export efforts and those of many other New Zealand companies, will have most disappointing results and the advantages which should result from devaluation will be greatly reduced in many overseas markets. Because of this, the last few months of the financial year

will be influenced by devaluation. The difficult credit and development finance position during 1967 has not prevented the company from increasing its activities, so that rising costs in these circumstances have been met by an increased volume of sales. The erection of a new factory in Auckland is in the planning and specification stage. The factory will be complementary to the Christchurch factory and will contain the activities of G. E. Winson, Ltd.