ZEALANDIA MILLING

Press, Volume CXII, Issue 32902, 28 April 1972, Page 15

ZEALANDIA MILLING

Kise in profit Whilst the turnover of Zealandia Milling Company, Ltd, Christchurch flour miller, fell short of last year’s record level, the over-all trading result was comparable, says the chairman (Mr R. H. Cranfield) in his report. Trading profit was virtually unchanged on last year, but profit before tax had the benefit of a retrospective adjustment of $2470, with the result that net profit rose 8.5 per cent to $29,224 in the year to December 31. The provision for depreciation was $363 higher at $9337. As announced, a dividend of 20c a share and a bonus of 20c, making in all 40c a share—-or 20 per cent—are recommended, the same as last year. However, the distribution is increased from $15,900 to $21,200, because of last year’s one for three bonus issue. The dividend is covered 1.4 times by the profit. Most of the changes in the balance sheet arise from the bonus issue: shareholders’ funds are higher, and land and buildings were written up. Liquidity has declined, because of the higher distribution, and higher sundry creditors; the ratio is 1.5 to one. The proprietary ratio is 63 per cent, with capital of $106,000 and reserves at $82,353. The company’s financial position appears to be very sound.

The earning rate on the higher shareholders’ funds at year’s end was a healthy 15.5 per cent.

The company’s fixed assets had been adequately maintained, Mr Cranfield said. Further storage for bulk wheat was provided during the year, and bins and machinery for the handling of flour in bulk were installed.