Dalgety profit rose 62 p.c.

Press, Volume CXIV, Issue 33443, 26 January 1974, Page 16

Dalgety profit rose 62 p.c.

(New Zealand Press Association) WELLINGTON, January 25. The unaudited group net profit of Dalgety New Zealand, Ltd. for the six months to December 31. rose 62.5 per cent to $2.116.000 compared with the same period of last year, the directors say in the half-yearly report.

Group profit before tax, excluding minority interest, was $3,665,000, compared with last year’s profit for the same period of $2,226,000. Turnover increased s77m or 53.8 per cent to s22om, with increases being recorded in all areas of group activities. The largest increase was in the urban and rural real estate divisions. “The trend in international inflation and the shortage of some commodities produced overseas continues to maintain a strong demand for our primary products,” the chairman (Mr L. A. Sisam) says. "We, as a primary' producing country, must be concerned with the uncertainties which now exist in international trade after currency realignments. the energy crisis and political instability which exists in some countries. “Farm borrowings are at a very high level and this has been caused mainly by a substantial increase in the value of livestock and the expenditure on deferred maintenance and farm improvements. “Our main trading profit comes from the second half of the financial year, and

.conditions will dictate the 'results that are achieved at that time. On present indica- | tions the outlook is (favourable. “The Government’s early (indication that it may extend the farm income equalisation scheme again in this (financial year would need (careful scrutiny in view of seasonal conditions in many parts of New Zealand, much higher farm overheads, and! (a substantial increase in; (income tax payments due; (this March.” Mr Sisam says. I An unchanged interim; 'dividend of 5c a share (51 per cent) will be paid on April 1975. The interim dividend will be paid on all shares including the bonus shares is-1 sued in November and; therefore the return to those I shareholders in equivalent to; 6c a share. New snares from the cash’; ; issue, which closes on Janulary 31, will also qualify for 'the interim dividend.