I. Watkins-Dow Benefits By Export Incentives

Press, Volume CVIII, Issue 31781, 11 September 1968, Page 21

I. Watkins-Dow Benefits By Export Incentives

Higher expenses more than offset a 17.1 per cent rise to $5,327,281 in sales of Ivon Watkins-Dow, Ltd, in the year to March 31, but export tax incentives enabled group net profit to be lifted by $19,063 to $192,705.

Sales of agricultural chemicals and equipment were slightly higher than last year, but substantially below the level budgeted for before the downturn of the economy, the j chairman (Mr W. G. Watts) says in the annual report. The remainder of the increased business was in j general chemicals, detergents! land exports. i The result was struck after! i providing $31,171 more for de-1

■ preciation at $156,363 and ! $26,869 less for tax at , $122,945. ' The steady 11 per cent divi- • dend takes $114,182. ■ The improvement was ini sufficient to maintain earning rates, that on average shareholders’ funds easing from i 11.4 to 10.5 per cent and that Jon average capital from 19.1 I to 18.6 per cent. Shareholders’funds increasled $378,358 to $2,029,962, in-

eluding capital raised by $105,602 to $1,040,262.

Most of the increase was because Dow Chemical, of the United States, paid a further call on its shares.

Export sales were a major contribution to the increase in group turnover, Mr Watts says.

Valuable assistance was received from Dow Chemical and this resulted in total sales in excess of $400,000.

Exports went to South-East Asia, Australia, South Africa, the United States and Europe. The directors are reasonably confident that the export performance will be repeated in the current year, Mr Watts says.

Next year, the balance date will be changed from March 31 to June 30. This will enable half-yearly reports to shareholders and the payment of interim dividends.