Manawatu could not meet demand

Press, Volume CXIV, Issue 33448, 1 February 1974, Page 21

Manawatu could not meet demand

.Xeu? Zealand Press Association)

WELLINGTON, January 31

It was not possible for Manawatu Knitting Mills, Ltd, to accept the volume of business placed by retailers for the coining winter, because of delayed delivery of raw materials and the uncertain availability of labour, the chairman (Mr D. G. Glendinning) says in the annual report.

Demand for the company’s brands of kitted clothing has continued to increase, he says.

Mr Glendinning says that, in common with most manu-

facturers, Manawatu Knitting Mills is optimistic about prospects for this year.

He predicts increases in the costs of materials, wages and operating expenses and says it appears certain that before the annual meeting on February 13 a genera] wage order, greater than was indicated by the Government in August, will be granted and the additional cost will have to be absorbed for some months.

Sales and production for' the first three months of this year show a satisfactory increase and. on the assumption that this will continue, Mr Glendinning says that he has no doubt that the company will have improved results for this financial year. Mr Glendinning says that this year the company will greatly increase its capital expenditure, rebuilding part of its buildings and installing more plant, which the company is well placed to finance without reduction in working capital. The accounts confirm the preliminary announcement that net profit rose 13.3 per cent to $75,281 in the year to October 19.

This was after providing $4041 less at $32,677 for depreciation, but $5341 more at $62,979 for tax, including $7499 ($7408) payroll tax. The 2 per cent increase, to 14 per cent, in the dividend rate requires $6335 more at $44,351. Total shareholders’ funds were $30,929 higher at $759,480 including $316,800 (unchanged) paid capital. Current assets were $838,945 (755,320 at the end of the previous vear), current liabilities $285,756 ($249,410), term liabilities $63,360 (unchanged), investments $42,600 ($43,146), a.id fixed assets $227,042 ($242,855).