WOOLCRAFT REPORT

Press, Volume CXI, Issue 32587, 22 April 1971, Page 16

WOOLCRAFT REPORT

Encouraging sales rise (N Z. Press Association) AUCKLAND, April 21. • Wodlcraft-Klipper Holdings, Ltd, began the year’s trading on an encouraging note (Mr R. King) told the annual meeting. In the year to December 19 the group’s net profit was $27,464, representing an earning rate of 3 per cent on capital. Sales in the first three months were ahead of the previous corresponding period, he said. The directors’ view was that the two companies should be sold only if satisfactory offers were received.

Mr King said that with the writing off of $45,000 goodwill the shareholders' funds of $1,181,751 represented entirely tangible assets at book value. This was equal to 128 c for each 100 c share.

A valuation of the Klipper property, in Stoddard Road, in December, established a value of $143,000, compared with the book value of $103,000.

The note to the accounts referring to a liability of $5OOO to the Bobby Brooks Agency, which was held by Woolcraft, was subject to arbitration. The result included $10,537 in income to the parent company mainly from interest on the funds froin the sale of Beriei (N.Z.), Ltd.

Mr King said that the holding company’s income would be substantially reduced after the return of capital was made. The future therefore rested on the profitability or otherwise of Woolcraft, and

Klipper. There was a serious fire at the subsidiaries* premises in January, but the raw material and stock losses, of about $130,000, were fully covered by insurance. Consequently, there was no loss to the company.

Hie previously reported stock discrepancy of $72,000 is a worrying and frustrating problem for the board. Subsequent action had been governed by police advice.