S.F.M. shareholders’ funds at $18m

Press, Volume CXIII, Issue 33155, 20 February 1973, Page 16

S.F.M. shareholders’ funds at $18m

The shareholders’ funds of Southland Frozen Meat and Produce Export Company. Ltd, increased from $8,104,952 to $18,199,853 —giving the 100 c shares a net asset backing of 364 c.

The main cause of the increase is the creation of a fixed assets revaluation reserve of $9,000,000. A note to the accounts says that this revaluation is supported by independent expert assessment. S.F.M. is one of the few listed companies whose directors do not comment on the year’s operations in the annual report. However, they said in an interim report last year, when announcing the revaluation, that there was no intention to make a scrip issue. The revaluation gives the shareholders a better view of' the real worth of the assets < employed in the production off income. Needless to say, itj

- affects the earning rate on a| funds: this year’s rate on - average funds falls 10.7 to 0[9.3 per cent, in spite of the sj doubling of the profit. The proprietary ratio is 70 -(per cent. Working capital fell from v $364,684 to $60,892. As announced, profit prace tically doubled — from . $865,982 to $1,639,901. This y was after providing $BOO,OOO t more for depreciation at s $1,400,000. s The dividend is unchanged , at 11c a share, with the final 8.5 c payable on March 14. ; Like all meat exporters, f the company is committed to ” heavy capital expenditure: jjconstruction and acquisition Hof new plant is estimated at .'5883,600, and future expendi-. Iture authorised by the direc-j (tors to comply with the hy-l Igiene requirements is $3,100,000.