ZEALANDTA MILLING

Press, Volume CXIV, Issue 33527, 7 May 1974, Page 20

ZEALANDTA MILLING

Fall in profit 17.9 per cent

The 17.9 per cent fall in the net profit of Zealandia; Milling Company, Ltd, was j j mainly because noretrospective payments were received this year. The chairman (Mr R. H. Cranfield) says in the annual report that sales increased more than 4 per cent, costs 'by a slightly lower percentage. Net profit fell from $31,249 to $25,654.

This was after providing $4675 less for depreciation at $15,084 and $2OOO less for taxation at $19,000. As earlier announced, the dividends are unchanged: 10 per cent plus a bonus dividend of 10 per cent. The amount required is $21,200, covered 1.2 times by the profit. The earning rate on average shareholders’ funds is 12.7 per cent. The funds' consist of $106,000 capital and $99,206 in reserves, j Shareholders’ equity is 72.4 per cent. Working capital increased $35,381 to $113,596; the current ratio is 2.8 to 1. The company’s financial position remains very sound. There were no major additions to plant completed during 1973, but since balance date a new weighbridge has been installed, which was used during the 1974 harvest. Premises and plant have been well maintained during the financial year, Mr i Cranfield says.