Farmers’ Profit Up 6.5 p.c.

Press, Volume CX, Issue 32396, 8 September 1970, Page 16

Farmers’ Profit Up 6.5 p.c.

The group net profit of New Zealand Farmers’ Co-operative Association of Canterbury, Ltd, rose by 6.5 per cent to $413,835 in the year to July 31. The profit is a record for the company.

In the preliminary statement the directors say that they recommend that the dividend be held at 10 per cent, with a final of 6 per cent. However, the dividend will require $lO,OOO more at $230,000. because of the increase in issued capital of

$lOO,OOO. The dividend will be paid on October 21, ex October 8.

• Ever increasing costs and • drought conditions in some 1 of the areas in which the : company serves the farming community imposed greater ' demands on working capital, but the ratio of current assets to current liabilities was maintained in excess of 2 to 1. The ratio this year is 2.09 compared with 2.07 last year. Operating expenses increased substantially, but were absorbed by greater increases in retail and commission earnings. Last year’s profit benefited from two exceptional items, only one of which recurred this year, at a much lower level. A useful contribution to tax paid profit had been earned from the continuing expansion of exiport trade, the directors say ’ After provision for the ifinal dividend of 6 per cent jfor the year the balance to be i carried forward in the appropriation account will be $606,126. L And M Oil The New Zealand Stock Exchange Association issued (the following statement shortly after 10 a.m. yesterday: “The directors of L and M Oil, as requested on Friday, have provided a satisfactory explanation which the Stock Exchanges accept, and quotations of the shares may be resumed forthwith.” Issue Proposed Wilson Malt Extract Company, Ltd, proposes that the capital of the company be increased by $900,000, by the creation of 900,000 shares of 100 c each, and an issue of shares be made to existing shareholders. Terms and conditions will be set out in a prospectus which will be issued after a meeting on September 25.

David Jones Profit

David Jones, Ltd’s, profit before tax was $11,081,000 compared with $9,960,000 last year, an increase of $1,121,000 or 11.26 per cent. In spite of the retrospective increase in company tax, profits for the year to Juiy 31, 1970, have risen to a record $5,936,000. This represents an increase of $401,000 over last year.