McSkimmings Loss Of $170,274

Press, Volume CVIII, Issue 31672, 7 May 1968, Page 24

McSkimmings Loss Of $170,274

McSkimming Industries, Ltd, the Dunedin-based brick and earthenware manufacturer, suffered a loss of $170,274 in the year to January 31, after making a profit of $67,596 the previous year.

“While I cannot yet say that the company be no repetition of this 1967 debacle,” says the holders the definite assurance that there will be no repitition of this 1967 debacle,” says the chairman (Mr L. H. Petrie).

As announced, the ordinary dividend of 8 per cent the previous year has been passed. The preference dividend is maintained at 5 per cent. Sales fell by almost 14 per cent, says Mr Petrie. With a drop of this magnitude, production had to be cut, but in doing this quite serious and difficult operational problems were created, especially in those factories operating tunnel kilns. Pipe Division The field pipe division was the most seriously affected. Sales dropped 26 per cent. Shortage of finance and restriction of credit to farmers caused outstanding orders to be cancelled and an unprecedented build-up of stocks. Sales in sewer pipes and fittings fell 14) per cent. This was particularly disastrous, Mr Petrie says, because it forced the company to operate the new and highly capitalised Abbotsford factory

far below its designed capacity. Sales Improvement Although no major recovery of sales is as yet evident, the slide has been checked and there is every indication that sales will improve in a number of areas in the near future. Shareholders’ funds are down 8165.551 to 81.617,395. The latest profit is after providing 82315 less for depreciation at 8182,653.

Current assets are up 813,755 to $631,144 with stock $23,983 higher at $365,307. Current liabilities are $209,256 higher at $584,942 with bank overdraft up $174,956 to $282,186, and the raising of a short term loan of $lOB,OOO.

BANK OF N.S.W. Higher Profit Expected The Bank of New South Wales expects a higher profit for the current year to September 30. The president of the bank (Sir John Cadwallader) said estimated results for the halfyear to April 3 indicated a favourable trend in profits. This was largely because of a higher level of deposits and advances, associated with circumstances which permitted freer use of the bank's resources. Indications at this stage were for improved results over the full year, he said. Interim dividend for the latest half-year will be 5 per cent, indicating a 10 per cent distribution for the full year.

Farmers’ Co-op Expansion r I The New Zealand Farmers’ I I Co-operative Association of Canterbury, Ltd, Christchurch. has purchased the Amberley branch of A. S. Paterson and Company, Ltd. The move will enable the New Zealand Farmers’ Cooperative to extend its services in North Canterbury. The grain and seed dressing facilities at Amberley will be I continued and once possession is taken about the middle of this month, the merchanI dise store will be renovated 'to give a wider retail coverage.