Ballins maintains profit

Press, 23 August 1976, Page 14

Ballins maintains profit

Increased turnover has enabled Ballins Industries, Ltd, to maintain its profits lor the first four months to July 31 of the current financial year, said the chairman (Mr B. J. Wilks) at the annual meeting.

“Unfortunately, the present industrial situation in New Zealand is quite alarming, and I am unable to comment on the effects it may have on the group,” he says. “The board of directors agreed that the recommendation of the New Zealand Society of Accountants in respect of equity accounting and straight-line depreciation be adopted in preparing this year’s results, to give a truer picture of the group’s position.” The problem of inflation and its method of accounting treatment is the subject of both Government and professional investigation, and it is hoped that an agreement can be reached on an adequate and realistic formula to enable current trading results, and asset and liability statements to be shown in true perspective compared with previous years. A logical corollary would also be the introduction of some means of allowing all traders, to provide funds from residual profits for inventories, debtors and replacement of fixed assets. “It is significant that earlier this week, the Australian Federal Government, in its Budget, introduced tax relief on profits on inventories

arising from increased] values caused by inflation. I “I would hope that the] New Zealand Government] will take some similar meas-i ures to assist New Zealand] companies,” Mr Wilks said. Commenting on the convertible specified preference share issue, Mr Wilks said that indications are that the issue would be well received by investors. The setting up of an Alcoholic Liquor Advisory Council would be of great value to the Government when legislation is introduced concern in gthe liquor industry, Mr Wilks said. “Our industry continues to have social and accompanying relevant problems which surely could well be investigated by such a body.” However, Mr Wilks was concerned that the numerical strength of the body should not be too great, as it would cause it to become wieldy and inconclusive. The joint managing director (Mr B. H. Ballin) told shareholders that Allied Liquor Merchants, Ltd, had started the manufacture of Martini Vermouth’s three top selling lines in New Zealand.

Apart from the import licence saving by making the

product here, the company was able to sell to New Zealand Wine Resellers because lit was New Zealand made. (This gave it an additional 350 to 400 additional outlets for the product.

The company was confident that sales would reach a very significant volume in a short time, he said. Mr Ballin also had a few words to say on the subject of New Zealand whisky. “This product has had the support of the group right from its introduction to the market, and I understand from Wilson Distillers themselves that our sales represent a very significant part of their business.

“A lot of publicity has been given to the fact that the trade has not given these New Zealand products —Wilsons and 45 South—the support they should have.

“I feel this is unfair criticism as the targets Wilsons set themselves for sales in the initial marketing period were unrealistic and unobtainable,” said Mr Ballin. “Wilsons whisky, when comparing its sales with brands of Scotch whisky, sits in number two position —to my mind a very notable achievement in less than two years.”