W. Sutherland success from new products

Press, 5 July 1977, Page 18

W. Sutherland success from new products

PA Auckland Two-thirds of present sales by W. Sutherland and Company, Ltd, are of types of leathers that were not being produced a year ago, the chairman of the company (Mr H. V. Brackstone) says in his review of the year to March 31. High hide prices had caused a rapid increase in finished-leather prices during the year but the demand for leather had remained high.

Forward domestic orders for all types of leather were encouraging.

During the year, the company had used its surplus tanning capacity for processing wet-blue leather for Colyer Watson and Com-

pany. Ltd. which had then exported the product. New equipment would double the capacity for wetblue production later this year. It would also serve to provide a strong basis from which to expand domestic production. As announced in a preliminary statement, a loss of $146,293, before extraordinary items, was turned into a profit of $359,211 in the latest year. A loss of $183,648 was incurred on the sale during the year of the assets of Arthur Cocks and Company and the Owen Optical Industries division together with the 49 per cent shareholding in Boxkraft (1973). However, the funds gener-

i,ated enabled a reduction in : outstanding liabilities. i The balance sheet shows ■ working capital of $46,353 at > March 31, compared with a > deficit of $326,516 a year t earlier. : The latest profit was after depreciation $24,795 lower at ■ $110,581 and interest charges r $31,971 higher at $189,941. • No taxation was payable. i To improve working capi- ■ tai, the directors recommend no dividend for the year. The j company last paid a dividend ■ to shareholders in 1974. i The earning rate on ordin- ; ary capital in the latest year was 54.7 per cent, while that on shareholders’ funds was 37.4 per cent.