Dalgety N.Z. profit $5.2M

Press, 18 September 1976, Page 14

Dalgety N.Z. profit $5.2M

Dalgety New Zealand, Ltd, recovered to earn an audited group net trading profit of $5,224,000 in the year to June 30. In addition to the trading profit a capital profit of $765,000 was realised on the sale of assets. In the previous financial year the group earned a trading profit after tax ot $1,208,000, and made a capital profit of $983,000. A more meaningful comparison, however, is with the group trading profit

. after tax of $5,357,000 fori I the year to June 30, 1974, f the report says. > The rate of return on average shareholders funds: »;in the latest year was 12.7 ■ f'per cent, compared with 3.1; uper cent in 1975, and 15.5: per cent in 1974. 1{ The group net trading i profit for the vear was 29.9 c I a share (1975, 7.0 c, 1974 -131.1 c). The directors recommend -ia final dividend of 6.7 c a II share ex-dividend October: i{l3, making a total of 11.7 c a! {share for the year, compared; with 11c a share for the previous year. The dividend will be paid from share premium re- , serves except to share- ’ holders who elect to have r dividends paid .from profits. t The total dividend is cov- ) ered 2.5 times by trading J profits. j “The highlight of the . financial year was the . dramatic improvement in the New Zealand agricultural economy,” the chairm an L. M. Papps) says. “Livestock. and wool prices recovered progressively throughout the year, which in turn, led to increased handlings and also increased sales of farm merchandise.

I “'lncreased revenue to the {company from these tradii tional sources was supplemented by further growth in [other areas, particularly [maize-processing, and handling, shipping, travel and wines and spirits.

“Subsidiary companies traded well; Aotearoa Meats in particular benefited from a high level of plant utilisation throughout the year, and improved overseas prices. ■ “Group revenue improved ■through increased productivity and higher prices while expenses were contained below inflation levels.

“The group is in a strong financial position with liquidity having improved during the year. There are four principal reasons for this strengthening; firstly the general improvement in clients’ finances: secondly the cash flow generated from the improved profit position: thirdly after the August 1975 devaluation, the drawdown of SUS4M, being the balance of an overseas loan facilitity arranged the previous year: and finally, the proceeds received from the sale of Tasman Vaccine Laboratory, Ltd,” Mr Papps says.