McSkimming Improves But Losses Not Offset

Press, Volume CIX, Issue 31987, 14 May 1969, Page 21

McSkimming Improves But Losses Not Offset

The consolidated net loss of McSkimming Industries, Ltd, Dunedin, was because profitable trading in the second half of the year to January 31 was not sufficient to offset losses incurred in the earlier part of the year said the chairman (Mr L. H. Petrie) in his annual review.

As reported yesterday, the loss was 811,967, compared with the previous year’s loss of 8170,274. Mr Petrie said that there was no satisfaction in presenting accounts which show a loss.

“Our major markets remained seriously depressed for the first half of the year. Even though there was a marked recovery in the second half, in few areas has the demand yet returned to

normal,” says the chairman. “This applies particularly to the sewer piper market, an essential commodity directly

tied to the rate of housing development” The loss was reached after providing 819,283 less for depreciation at 8163,370. This

■ figure includes a write-back 1 of $4404 on disposal of assets. 5 There is no tax payable, but the loss was softened by : bringing in $7835 from de- • ferred tax provision. r The company has again omitted its ordinary dividend,

but will pay its preference dividend, which requires $6OOO. The $14,875 deficit is met from the general reserve, which has been reduced accordingly to $215,665.

The accounts show shareholders’ funds reduced from $1,617,395 to $1,601,208, of which capital accounts for

81m. Mortgages increased from $620,250 to $964,700. Current liabilities are down from $584,924 to $284,755,

with overdraft $166,758 lower at $115,428 and last year’s short-term loan of $lOB,OOO repaid. Current assets are up from $631,144 to $722,755 with stocks $13,649 higher at $378,956 and debtors $63,451

higher at $317,109. Fixed assets are down from $2,117,478 to $2,022,727. The chairman said that total sales were $114,000 higher than in the previous

year. Brick sales rose by 8 per cent and sewer pipe sales were only 94 per cent of the

previous year’s figure. Field pipe sales to farmers recovered by 2 per cent after being only 39.2 per cent of the previous year’s figures in the first half of 1968. Concrete pipe sales rose 35 per cent. The directors propose to .increase nominal capital by $500,000 to $2,120,000.

Agreement On Nickel Search (N.Z. Press Assn.—Copyright) SYDNEY, May 12. The Adelaide-based Uranium and Nickel Exploration informed the Adelaide Stock Exchange that agreement had been reached with Consolidated Nickel, N.L., which holds an option on the six claims amounting to 1800 acres, to drill significant anomalies. The joint venture involves only the Kalpini claims held by Consolidated Nickel. The three groups of nickel claims, amounting to 7200 acres, held by Consolidated Nickel in the Yalgoo area, south of Mount Magnet, where near-surface values of 1.88 per cent nickel, 1.94 per cent cobalt and .05 per cent copper have been reported, are not included, Uranium and Nickel said. However, Uranium and Nickel owns 100,000 shares a 13 1/3 per cent interest—in Consolidated Nickel, N.I. The company will apply to have its shares and options listed on the Sydney and Melbourne Stock Exchanges, when trading in the current rights issue ends on May Doyle *576 (three months or 12 30.