Wilson Distillers aims to return to profit

Press, 19 November 1977, Page 19

Wilson Distillers aims to return to profit

Wilson Distillers, Ltd, was i close to returning a profit in the final six months to August 31, and that is the aim of the directors in the current year, says the chairman (Mr C. D. Baker) in the annual report. “It is evident, however, that in a less than free market, the opportunity of an even greater expansion of sales is necessary before a reasonable level of profit is reached,” he says. As announced the company incurred a net loss of $98,440 in the 18 months to August 31, compared with a net loss of $188,282 in the 12 months to February 29, 1976. Looking at the progressive [results, there was a loss of $62,681 in the first six [months, $25,400 in the [second, and $10,359 in the [final six months, Mr Baker says.

“This trend in the right direction has been assisted by the continuing profitability of the malting business. “Throughout the period sales have improved steadily and the volume increase for our whiskies has been consistent with the over-all ins crease for the 12 months to August at 13 per cent. “This improved performance compares favourably with the sales volume recorded by other spirit categories,” he says. The packaging of the company’s two whiskies has been changed, and consumer reaction has been favourable. Any assistance to the company because of the Import Deposit Regulations were lost when imported spirits were excluded from the provisions of the regulations in July, 1976. On two occasions during

the 18 months duty has been increased on spirits, both imported and domestic, with the over-ail increase about 30 per cent. “Those imposts affected our product as well as the imported product, but our percentage preference has been maintained. “Sales volume of the company’s established malt products have also held up well against rising costs, and even higher prices for our products have been avoided only by better productivity. “Exports for the period exceeded $190,000 and the taxation benefits associated with these exports await a return to profit,” Mr Baker says. The loss was after paying $31,553 more for interest on debenture-secured loans, and after providing $25,402 more for depreciation at $199,208. Again no tax was payable because of the loss. Shareholders’ funds fell $440 to $1,606,515. Issued capital was increased $98,000 by the conversion of 98,000 100 c convertible notes. Working capital fell $39,432 to $1,277,103 and the current ratio fell fro-m 1.9 to 1.8:1. Included in current liabilities is a short-term advance of $920,000 from the associate company, Greggs, Ltd. The advance last year totalled $1,070,000.