Nth Steam Now In Strong Position

Press, Volume CX, Issue 32322, 13 June 1970, Page 14

Nth Steam Now In Strong Position

(New Zealand Press Association) AUCKLAND, June 12. The record profit earned by the Northern Steam Ship Company, Ltd, in the year ended March 31, together with the much-improved liquidity position, enabled the company to reorganise more rapidly and prune overheads where possible, the chairman (Mr D. R. Richards) said in the annual report.

The company was now in a. better position to withstand any temporary setbacks, and could face the current year with a reasonable degree of confidence, he said.

Commenting on costs in the industry, Mr Richards said the company was fortunate in the last year but expenses were rising. The group net profit rose very strongly from $19,836 to $124,904. It was struck after providing $45,081 less for depreciation at $143,216 and $103,354 more for tax at $122,829.

The 9 per cent dividend takes $74,631. No payout was made last year. The earning rate on overage shareholders’ funds rose from 0.8 per cent to 9.2 per cent and that on capital was

up from 1.2 per cent to 15.1 per cent. Shareholders’ funds were $50,273 higher at $1,390,279, including.capital of $829,221. A major reorganisation of the fleet took place during the year. The Poranui was sold before maintenance became too great. The Sea Princess was also sold because of the prospect of costly delays in port as more stern-loading vessels arrived. The bulk carrier Dido, came up to company’s expectations in every respect. The company has two vessels on the Onehunga-South Island cargo service and felt every effort should be made to[ continue this service. Survey Costs Up However it was difficult to define how this service would; fit into the future national? trade pattern, the report said. As the two ships disposed: of during the year were sold "as is”, no survey costs were incurred. A substantial increase in survey costs must be expec-

ted during the current year, the report said. The depreciation figure was also low as the Dido was not in use during the period covered by the accounts. Research had been done aimed at continuing the policy of diversification. No effort was being spared to achieve a better-balanced and more stable company.