W. SUTHERLAND Diversification and expansion

Press, Volume CXIII, Issue 33277, 14 July 1973, Page 13

W. SUTHERLAND Diversification and expansion

(New Zealand Press Association)

AUCKLAND, July 13.

W. Sutherland and Company, Ltd, had an encouraging, forward position, with a firm demand for all products, the chairman of the Auckland leather packaging and merchant group (Mr A. G. Wilson) says in the annual report.

The policy would be for expansion and diversification. In the year under review, the previous Government’s policy of phasing out import controls, and the air of uncertainty which thereby arose, added to the difficulties of decision-making and policy. A degree of protection was essential to create the confidence necessary to expand industry. Export developments were ahead during the year, and the company was receiving repeat business for sunglasses for Japan, leather for Hong Kong and the United States, and footwear for the Pacific.

Labour shortages and increasing costs of materials would continue to create problems, but careful planning would control the effects as much as possible. As announced, the profit was $74,801, or 54.4 per cent, higher at $212,228 in the year to March 31. The turnover was $2,582,300 — an increase of 32.3 per cent for the year. The results of the optical division added mat-

erially to the profits achieved. The one-for-two issue at a premium of 160 c per 100 c share would lift capital by $218,750 to $646,250. The year’s result was, after tax, down $21,450 at $7550, and depreciation was $10,692 higher at $47,837. The steady 12| per cent dividend took $54,687, of which $32,812 was from capital reserves for the final 7| per cent — which was tax free to shareholders.

The earning rate on capital rose from 31.4 per cent to 48.5 per cent, and on shareholders’ funds from 9.9 per cent to 15.2 per cent.

Shareholders’ funds were $62,580 higher at $1,431,709, and included steady capital of $437,500.

N.Z. INDEX

New Zealand.—New Zealand United Corporation, Ltd. daily index base 100, January 21. 1957 July 9 404.43 July 10 402.04 July 11 397.42 July 12 393.85 July 13 393.18