Waitaki Forecasts 16 p.c. Dividend

Press, Volume CVIII, Issue 31768, 27 August 1968, Page 21

Waitaki Forecasts 16 p.c. Dividend

Group net profit of Waitaki Farmers’ Freezing Company, Ltd, Pukeuri, increased, and total dividend for the year might be raised to 16 per cent from last year’s 14 per cent, the chairman (Mr D. Malcolm) says in a notice to shareholders.

As announced, the interim dividend has been raised from 3c to 3.5 c a 50c share, equivalent to 7 per cent. It is expected that the final dividend will be 4.5 c, making a total of 8c a share.

Mr Malcolm says that the company, whose year ends on October 1, has already processed a record number of sheep and lambs, with a fractional increase in lamb weights compared with 1967.

Over-all unit costs have not increased.

By-products Better

The market for some byproducts has been slightly better than last year, but casings and tallow prices are down.

The company's limited trading in sheep and lambs shows an improvement, but the result cannot be assessed for

some months, say Mr Malcolm.

He adds that the drought that had afflicted North Otago for nearly four years finally broke in the autumn.

Uraquayan Market

The United Kingdom subsidiary Stock Breeders Meat Company, Ltd, has run profitably and it is expected that this will continue for the remainder of the year. Waitaki has sold its interest in the Uruguayan beef processing company at a capitalloss, but has retained the exclusive United Kingdom commission handling of the company’s production. Mr Malcolm says that there have been capital gains from the realisation of some shares, and devaluation.

Investment Increase

The valuation of the company’s share portfolio at July 31 showed an increase of

$348,956 since October 1, 1967.

At last balance date the company's investments in listed shares had a market value of $950,729, so that the value at July 31 would have been $1,299,685. Last year the company earned a net profit of $325,207 for an earning rate on its $1,521,116 capital of 21.37 per cent.

Sea Prod. On Short Week New Zealand Sea Products Export, Ltd, Wellington, will work a four-day week from today, the administration officer (Mr P. Oxnevad) confirmed. The factory did not open yesterday. Mr Oxnevad said the company’s two trawlers had been fishing off the Chatham Islands and one, which had been expected in Nelson yesterday would not arrive until today. This was the first time the company had availed itself of a staff offer to work a short week, he said. The company had not run out of fish since the offer was made six or seven weeks ago.

Early Bros Sales Rise Group sales of Early Brothers Dental and Surgical Supplies, Ltd, Christchurch, show a steady increase on last year’s figures, the directors report. Interim dividend on ordinary shares is steady at 5 per cent, payable October 1, ex dividend September 20.