C.T.P. sees good market for new fibreboard

Press, Volume CXV, Issue 33981, 23 October 1975, Page 20

C.T.P. sees good market for new fibreboard

The directors of Canterbury Timber Products, Ltd, are confident that the projected levels of residential construction, with the associated demand for furniture and fittings, will provide a good demand for the company’s products, the chairman (Dr 0. F. Haylock) says in his annual review.

“While the current economic downturn is less severe than that experienced in many other countries, its effect on the level of demand for a product which is new to the New Zealand market is hard to forecast.” Dr Haylock says. But the directors remain confident that the company will find a good market for its new fibreboard. The new product is aimed at the higher quality end of the market. The accounts for the year to March <3l show a loss of $165,106. In its prospectus last year a loss of $1.2 million was predicted for the 1976 year, with a small profit in the following year and aver-1 age profits of more thanl SBOO,OOO thereafter. A maiden dividend of 101 per cent was predicted for the year to March 31. 1978. In the 1976 year the company will achieve only three months' production, if the plant gets on stream by December — the predicted start-up time. The company has largely escaped the effects of devaluation on construction and materials and plant purchases. The major part of the equipment — purchased overseas for about SUS6m — was on a fixed-price contract, covered by forward exchange insurance. The accounts show fixed assets at balance date at $5.7m — the bulk of its capital work in progress. Capital stands at

$4,250,000; it has been increased since balance date to $5,050,000 by a placement of 800,000 100 c shares. Term liabilities are $1,250,000; this sum has since increased to $3.7m. The company’s manufacturing processes require only a limited range of raw materials, and their supply is assured. -Pr-Hay lock says.

Although the big storm of August 1 caused severe forest damage the chairman says that, the company has been assured by the New Zealand Forest Service that adequate supplies will be available under its contract from trees still standing in State forests, supplemented by recoverable storm damaged lumber, -