Profit decline by N.Z. Pastoral

Press, Volume CXI, Issue 32778, 1 December 1971, Page 23

Profit decline by N.Z. Pastoral

New Zealand Pastoral Holdings, Ltd, earned a group net profit of $2655 in the year to June 30, down from $3608 last year, according to the annual report.

The chairman (Mr D. N. R. Webb) says the company has not been immune to the economic problems at present afflicting farmers. The effects on the company were compounded by the necessary development programme being undertaken. The many imponderables; which currently surround the industry preclude any reliable prediction of future results, but significant progress has been made, Mr Webb says. When the company embarked on the venture at Pio Pio it did not bargain for the j present circumstances of inflation, nor for the two successive droughts which have so seriously affected animal performance. But a rapid improvement in the physical condition of the property has been achieved, he says. The main work now with the pastures is consolidation, j and this will be achieved; with stock and fertiliser. What is needed to show the • effectiveness of the com-; pany’s policies is a normal i season, and not another dis- ■ astrous drought, the effect of 1 which can show up in much ] later calving and lambing ] percentages. The profit was struck after i providing $250 less for depre- i ciation at $3250. h No tax is payable because 1 the farm development expen- h diture is deductible. I< The company will again h

pay no dividend or directors' fees.

Earning rates on average shareholders’ funds and capital are down to 0.5 per cent from 0.6 per cent, and 0.7 per cent last year. Shareholders’ funds are $563,909 ($561,099 last yeari.i including capital of $553,300j (same).

Current assets are $15,347 ($16,698), livestock $188,082 ($193,862) and fixed assets $341,279 ($329,618). Current liabilities are $26,142 ($24,260).