Burnett Hold, Sees Return To Normal

Press, Volume CVIII, Issue 31770, 29 August 1968, Page 13

Burnett Hold, Sees Return To Normal

Burnett Holdings, Ltd, the Ashburton-based cartage and contrasting group, expects a return to normal trading conditions if incomes of farmer clients become stabilised, says the chairman (Mr H. M. Copland) in his annual report.

As announced, the group profit rose $71,930, or 94 per cent, to $148,788 in the year to March 31. covering the steady 8 per cent dividend requirement of $BO,OOO 1.8 times.

The earning rate on average shareholders’ funds improved from 5.5 to 10.5 per cent while the rate on capital is up from 7.7 to U.S - per eent.

The improvement in profit has arisen mainly because of a profit from the Manapsqri power project as against a provision for a loss in the previous year, says Mr Copland. In the previous year, the share of the loss was 5150,056 but adjustments nude by the sponsors after the accounts had been printed reduced the loss to $121,05?. Tax short-provided-has been adjusted in the latest accounts. Mineral Deposits Mr Copland says that the vast mineral deposits on the freehold property of Mount Somers station, purchased during the year, will be exploited fully. The property, purchased for $280,000, has 7000 acres of freehold and 10.000 acres of pastoral lease. The mineral deposits comprise lime, silica sand, clay and possibly coal. Stock and plant cost $96,000 and the station carries 13.000 sheep and 500 egttle.

Burnett Motors, Ltd, the main subsidiary, showed .only a slight decrease in demand for goods and services ip spite of a falling off in farming income.

Lamb Carrying A big percentage of fat ianibs carted to works is done at double time because of the Meat Hygiene Regulations, says Mr Copland. The Department of Agriculture will not compromise on this vexed question and-it appears that the road carriers will either have to curtail their hours of work or seek increased cartage rates. Either will have an adverse affect on both farmers and freezing companies in this important export commodity. , The lime and manure transport fleet has been working to capacity and orders on hand will ensure continuity of work for some months. The earthmoving and contracting division has been affected by the decrease in Government and local body contracts. It is expected that there will be a demand for earth-moving machinery when further hydro projects are started In the Waitaki basin. Factory production of

trailers, tanker trailers, fue) tanks and farm equipment has been fully maintained through the year.

Shareholders’ Ftipd* Shareholders’ funds arg $68,788 higher at $1,454,060 and include steady ordinary capital of slm. Liquidity ba? been improved, with working capital turning from a deficit of $81,672 to a surplus of $49,201. Current assets are $10,977 lower at $985,885 while current liabilities are $141,850 less at $936,684. Bgnk overdraft is down $169,728 to $271,122. Fixed Assets Fixed assets are $48,798 higher at $1,098,400 while investments, are $53,490 higher at $118,032. largely through a rise of $42,501 in shares and debentures at cost to sBp.o6fi.

The latest profit is after providing $77,877 more for tax at $139,717 and $4336 less for depreciation at $303,198.