Dalgety N.Z. profit fell 77 per cent

Press, Volume CXV, Issue 33941, 6 September 1975, Page 19

Dalgety N.Z. profit fell 77 per cent

The audited group net trading profit of Dalgety New Zealand. Ltd. for the year to June 30 fell $4,149,210, or 77.3 per cent, to $1,207,988. the directors say in a preliminary report.

Capital gains of $983,511 , were realised on the sale of 1 assets in the course of rationalisation. In the previous financial ;year the company had capital gains of $2,370, <BB5, mainly from the repayl ment of a sterling debenture.; Provisions for depreciation ! and taxation were not given in the report and the sales revenue for the year was; (also omitted. The rate of return on average shareholders funds: was given as 3.1 per cent; compared with 15.5 per cent; last year. The directors will recom-' mend to the annual meeting: of shareholders on October 3i ; a final dividend of 6c a] I share ex dividend Oct 10,! making a steady total of lie! ja share (11 per cent) fori the year. The dividend will be paid: from share premium re-! serves for shareholders, who elect to have! dividends paid from this; source. The total dividend require-; ment is covered 1.1 times bytrading and capital profits, , the report says. The profit I included extraordinary items ■of $380,000 ($747,000 last < year) so the net trading proTit rose $221,000 or 5.5 per ! | cent to $4,025,00.0. The profit after providing $1,386,000 less at $1,376,000 for taxation, but $540,000 : more at $5,916,000 , for depreciation. The total dividend dis-; tribution is maintained at 7c I i a share with a final 3.5 c to; Ibe paid on November 20. Higher interest rates cost; the group almost slm and additional borrowings to support new ventures not yet contributing in full to profit, added a further s2m to interest costs. No reliable prediction can be given at this stage of the degree of further profit improvement which will be achieved by the company in the current year, the directors say. clients and staff might find the profits disappointing, they had been achieved in D.J.s raises div. D.J.’s Properties, Ltd, is! raising its annual dividend! rate by 1 per cent to 12 per, ■cent after a 23.3 per cent! ■ increase in group net profit! to $752,961 for the year to July 31. The net trading rel suit was after tax of $484,045 (up $25,442) and depreciation of $193,798 (up $32,208). The earning rate on average , issued capital increased 3.2 I per cent to 33.4 per cent.

the face of falling international commodity prices, which resulted in a sharp reduction in earnings from livestock, real estate and merchandise. Operating costs, especially salaries and wages, rose 'steeply," the chairman (Mr L. M. Papps) says. “During the year we arranged a loan facility of SUS6.Sm, of which it was necessary to uplift only $2.5m. The. company’s liquidity improved rapidly in the latter part of the year, because of substantially reduced requirements for working capital. “The group overdraft at June 30 was $11,115,658 less than the previous year. “Benefits arising through Government assistance to farmers through fertiliser and freight subsidies, the seasonal support scheme, assistance given through the Rural Banking Corporation, the Meat Board, and the Wool Marketing Corporation, must be acknowledged. “These measures, and the recent 15 per cent devaluation, along with the higher support price for wool, will go part of the way to ensure

I continuity of investment ini the farming industry. “Additional assistance will! still be required, and it car/ only be hoped that farm! leaders will accept some! form of income stabilisation i to assist their industry. “Dalgety will continue to] play its part wherever pos-! sible in helping to ensure! the long term security of| farmers in New Zealand,’! Mr Papps says.