Best Years Still To Come—Wattie

Press, Volume CVIII, Issue 31835, 13 November 1968, Page 14

Best Years Still To Come—Wattie

Sir James Wattie, chairman of J. Wattie Canneries, Ltd. Hastings, says in the annual report that the company’s most successful years have yet to come.

Furthermore, he believes that the company’s place in the New Zealand economy will rapidly become one of even greater importance.

As announced, the group profit for the year to July 31 rose $336,309, or 36.8 per j cent, to $1,252,296, after sales I rose $2,765,906, or 15.4 per | cent, to $20,673,465. The dividend, reduced from 111 to 10 per cent, is paid on capital raised by $638,621 to $5,735,173 after balance date by the two-for-five bonus

issue. This means that the dividend requires $178,864 more at $573,517 and after providing $96,000 for the preference charge, is covered twice by profit. Effective Yield The effective dividend yield on pre-bonus capital is 14 per cent.

The earning rate on average shareholders’ funds is up from 9.6 to 11.8 per cent while the rate on average ordinary capital falls from 22.9 to 20.2 per cent. Because the average capital rate is worked out or the amount of dividend paid out, it is distorted because of the bonus.

The provision for depreciation is $212,177 higher at $1,059,411, while that for tax is $175,000 higher at $970,000. Overseas sales at $2,349,358 were a record, and prospects indicate greater expansion, says Sir James Wattie. Shareholders’ funds arc $855,091 higher at $11,860,112 with ordinary capital $91,615 higher at $4,096,552, and preference capital unchanged at sl.6m.

Bonus Issue However, the bonus issue has raised ordinary capital to $5,735,173, while the merger with General Foods New Zea land, Ltd, will raise this even further.

Yesterday, when the offer for General Foods was declared unconditional, acceptances totalled 91.5 per cent.