Woolcraft stock discrepancies

Press, Volume CXI, Issue 32568, 30 March 1971, Page 20

Woolcraft stock discrepancies

(New Zealand Press Association) AUCKLAND, March 27. the group net profit of WoolcraftKlipper Holdings, Ltd, for th® year to December 19, was $27,464 after writing off $79,579 for stock discrepancies.

In a preliminary statement, the directors said that the trading of Berlei N.Z., Ltd, did not affect the result because the business was sold before the end of the financial year. The profit is the aggregate of the results of the parent company and two subsidiaries, Woolcraft (N.Z.), Ltd, and Khoper (N.Z.), Ltd. In an analysis of the pretax group profit of $50,640, the directors said that the holding company contributed $10,537, Woolcraft $12,696 and Klipper $27,407. Group tax amounted to $23,176. The directors said that the profit included from Woolcraft, Ltd, is' the actual trading result for the year. Stocktaking, last December, revealed serious stock discrepancies and audit investigations established stock shortages amounting to $72,579 in respect of a period before the year under review. The whole of the discrepancy was written off as a separate item in the profit and loss appropriation account.

The income from the parent company was derived principally from interest on moneys received from the sale of Berlei (N.Z.), Ltd. Klipper (N.Z.), Ltd, showed a satisfactory recovery in the second half of the year,' though the benefit of higher sales was largely eroded by escalating costs. After the sale of Berlei (N.Z.), Ltd, for $645,870, the shares of this subsidiary and those of the non-operating subsidiaries, Laddaloc Lingerie (N.Z.), Ltd, and Peggy Clark, Ltd, have been written out of the books. Shareholders’ funds after ; all adjustments stand at $1,181,751. The directors estimated last ■ year that after the sale of

Berlei (N.Z.), Ltd, shareholders’ funds would total about $1,227,000. A dividend of 3 per cent was recommended by directors. As indicated in the interim report, the. directors are submitting resolutions seeking shareholders’ approval for a reduction in capital of $461,250 (50c a share). Wool marketing A grazier-backed woolmarketing company has begun operations in Australia to sell wool privately at the best available price. The company, Economic Wool Producers, Ltd, was founded last year hy its chairman (Mr J. I. F. Maple-Brown) to sell wool on behalf of its woolgrower shareholders, it is selling wool in a top form, an advanced stage in processing, or as greasy wool. Mr Maple-Brown, revealing that operations had begun, said that the company would not seek stock exchange listing.