C.F.M. Losses Heavy On Early Purchases

Press, Volume CVIII, Issue 31579, 17 January 1968, Page 18

C.F.M. Losses Heavy On Early Purchases

The fall in English meat prices in the early months of 1967 assumed greater proportions than in the previous two years and continued into April, bringing severe losses on all meat purchased in the early part of the season, says the chairman of the Canter* bury Frozen Meat Company, Ltd, (Mr L. D. Cotterill) in his annual report.

As announced, the group suffered a loss of $18,266 in the year to October 1 against a profit of $591,458 the year before. The parent company’s loss was $89,933.

However, the ordinary dividend has been maintained »t 6i per cent. Because the shares from the issue at par during the yey qualify for half this, the dividend requirement is $19,500 higher at $175,500. As well, there is a steady preference charge of $12,000. To meet these dividends, the market fluctuation reserve is reduced $200,000 to $400,000. Trend For 1968 The trend of prices for 1968 is hard to forecast because, as usual, many quite unpredictable factors influence the prices of the company’s products, most of which have to be sold on unprotected “free” world markets, adds Mr Cotterill.

For the second year running the English market, where 92 per cent of New Zealand export lamb is sold, has been thrown out of gear at a critical period by strikes. In 1966 it was the general shipping strike, and in September, 1967, an “unofficial” dock strike. Both produced what would appear to be fortuitous rises in the market because of nervousness on the part of purchasers as to the continuity of supplies. Unreliable Guide The unreliability of price fluctuations in the latter part of the year as a guide to the future has been illustrated in the early months of 1965, 1966, and 1967, by considerable falls. Trade with European countries is most difficult Import regulations and quotas are among the chief difficulties, says Mr Cotterill. Apart from the lambs sold to the Meat Export Development Company for the United States and Canada, sales have been made to the West Indies, the Caribbean and Pacific Islands, Europe and Japan. Lamb Kill The number of lambs killed for the season was 191,307, or 9.9 per cent, higher at 2,126,602. The average weight of lambs was 30.021 b a carcase against 31.611 b in 1966. The latest result is after providing $81,032 more for depreciation at $494,656. No tax provision is supplied.

the United Kingdom have been converted to New Zealand currency at pre-devalua-tion exchange rates.

Shareholders' funds are $391,160 higher at $6,393,264. Ordinary capital is $600,000 higher at s3m because of the one-for-four issue at par and preference capital is unchanged at $200,000. Revenue reserves are $205,764 lower at $2,852,436, and capital reserves $3076 lower at $340,828. Fixed Assets Term liabilities are steady at $2,337,500. while fixed assets are $305,205 higher at $7,948,113. The cost or valuation of these fixed assets was $12,536,958.' Investments, debenture repayment reserve investments, mortgages and loans out are $58,194 lower at $824,822. The major change is Government and local body stock, $112,474 lower at $98,168.

Current assets are $124,095 higher at $3,837,959, and current liabilities $120,069 lower st $3,852,243. Included in contracts for capital expenditure is $500,000 for a new head office building for which no contract has yet been let. The assets and liabilities tn