Record profit is disappointing”

Press, Volume CXI, Issue 32778, 1 December 1971, Page 21

Record profit is disappointing”

(New Zealand Press Association) ’ **' ' ' DUNEDIN, November 3().’ While the profit of the South OtagoFreezing Company, Ltd, in the year to August 31, was a record for the company, the result was nevertheless disappointing in view of the very substantial increase in throughput and the considerable effort to improving operating efficiency, the chairman (Mr J. D. Cockrane) said in the annual report.

As previously announced, the net profit increased 5.4 per cent to $360,117. The season was the first in which the company traded on 10 per cent of the schedule kill in both sheep and lambs. It produced a highly satisfactory result, although profit was small. Record kills for both lambs and sheep were made in the last season, the cattle kill being only marginally down on the record kill in 196970.

The directors have recommended that an unchanged dividend of 10 per cent be paid to all registered holders of shares on November 26.

Fixed assets increased by $758,879 during the year. Of this amount, $377,368 represented the completion of a capital programme. The balance of $381,511

represented payments made to date on the fifth chain complex and in extending the slaughterhouse to cope with more demanding inspection standards of the United States Department of Agriculture.

A capital reserve of $19,698 was created by a profit made on the sale of company houses which were surplus to requirements.