S’land Meat Year ‘Satisfactory'

Press, Volume CVIII, Issue 31628, 14 March 1968, Page 16

S’land Meat Year ‘Satisfactory '

(New Zealand Press Association)

INVERCARGILL, March 13.

Although net profit for the Southland Frozen Meat and Produce Export Company, Ltd, fell from $531,982 to $237,551 in the year to October 1, the company could be satisfied in meeting demands for tax and depreciation and still be able to match last year’s dividend without needing to transfer from reserves, the chairman (Mr A. F. Gilkison) told the annual meeting today.

In his annual report Mr Gilkison said the total dividend of 8 1-3 per cent would require $374,985, or $l5 less than last year’s payment..

Commenting on the accounts, Mr Gilkison said that with capital expenditure for the immediate future only on a low scale, the amount needed in future years for depreciation would tend to be reduced. As a result of the extensive

• capital work and falling marI kets, the company was on continuous bank overdraft ' during the year under review. “In addition, the first full : year’s interest on the s2m • term loan came to charge, : with the result that more than two-thirds of the in- • crease in general charges was

because of interest on borrowed funds,” he said. Apart from water treatment plants and minor changes on slaughterboards and modernisation to meet hygiene requirements at both works, expansion had been completed in the meantime. “The big jobs facing us in the future are the new beef slaughterhouse and the effluent disposal plant at Mataura. We expect this pause will enable us to improve our cash liquidity,” Mr Gilkison said. Trading Profits Trading profits for the year were $1,665,574, a reduction of $67,962. “In view of all the circumstances, it is indeed a wonder that this reduction is not much more pronounced,” Mr Gilkison said. Yields from investments remained satisfactory.