W. Neill sales ahead

Press, 7 August 1976, Page 17

W. Neill sales ahead

PA Dunedin The sales of Wilson, Neill, Ltd, had risen 20 per cent in the three months to June 30, since balance date, said the chairman (Mr J. A. Valentine) at the annual meeting. The main increase was again in the export division, he said. “The present situation in overseas markets indicates another good year for the export division, with good demand for our main products — venison, fish, skins and timber.” He said the company had expected a difficult year in the home appliance division before the increased sales tax on television and sound equipment imposed by the Budget, but now it would be even more difficult than expected. “During the last financial year we gave renewed attention to the liquor division

with the appointment of a divisional manager and plants to relocate wholesale licences in Invercargill and Dunedin. “These attempts at relocation have encountered problems and objections, but we are continuing to move towards increased penetration in the private trade.” The company had already purchased the Prince of Wales Hotel, in association with Mr P. W. Blain, and two wine licences in Timaru to further this objective. The grocery business was the most competitive area of activity, and this would receive continuing attention in the current year, he said. Although the liquid position of the company was satisfactory, and better than it had been for some years, the board had decided to proceed with an issue of specified preference shares to raise a total of $325,000.

This issue would keep the company’s finances in sound order, and enable the company to take advantage of investment opportunities as they arose. The company had not previously raised loan monies on the debenture market nor issued convertible notes, and thus avoided the costs and restrictions of a trust deed, he said. Because the dividend was deductible for tax purposes, an issue of specified preference shares reduced the servicing cost to the company and thus benefited both the company and shareholders. As reported, in the year to March 31, group net profit increased 56 per cent to $571,655. The meeting approved a 13c dividend which was covered more than three times by the available profit.