Warehouse Profit Cuts K.P. Net

Press, Volume CX, Issue 32385, 26 August 1970, Page 16

Warehouse Profit Cuts K.P. Net

The net profit .of Kempthorne Prosser and Company, Ltd, increased by $2985 to $549,855, in the year to May 31. The dividend remains unchanged at 9 per cent.

The company’s warehouses had achieved record sales and fertiliser sales were slightly up on 1969 figures, despite the drought conditions which had prevailed over the last few months of the trading year, the chairman (Mr W. L. Cunningham) said.

While sales at warehouses and branches reached record levels, it was disappointing to report a reduction in warehouse profit, he said. “With price and profit control being strictly enforced, the burden of price increases since devaluation in 1967 has not yet been lifted from our industry, and we consider this justifies some prompt attention,” Mr Cunningham said.

“Increases in wages, freight and many other charges are all borne by the company and cannot be passed on to retailers as is done in most other trading organisations." Gross profit this year was down more than $lOO,OOO to $1,421,971.

Including other income and dividends, the total gross return was $1,579,571 compared with $1,665,019 in the previous year. The profit was struck after a reduction of $53,946 in depreciation of $463,027, and a reduction of $61,486 at $402,782 for tax. Interest payments rose $36,339 to $160,761.

The steady 9 per cent dividend takes $274,668 and is covered 2.2 times. The directors are recommending a transfer of $200,000 to reserves which after allow-

ance for adjustments will lift the total retained profit from $342,278 to $408,501.

Aid For Russia

West German Federal Government ministers had held discussions with the DaimlerBenz Company over the possible construction of a lorry in the Soviet Union. A spokesman for Daimler-Benz in Stuttgart said negotiations were in progress with the Soviet Union, but no plans were concrete yet He added that Daimler-Benz was interested in making available its licence and sharing its technical know-how.

Minefields Progress

The technical managers of Minefields Exploration NL, Anthony McKenna and Partners Pty, Ltd, report that the evaluation programme at the Mount Mulgine is proceeding satisfactorily. Assays of drill core are not yet available, but molybdenum, tungsen and copper mineralisaion has been visually observed in the core of all holes drilled so far. The mineralisation is associated with fairly heavy iron sulphides. Profit Halved Gold Mines of Kalgoorlie (Aust.) Ltd’s, net profit for the year to June 30, was approximately $316,000 compared with $741,042 for the previous year.