Nice report from Waitaki

Press, 31 July 1978, Page 14

Nice report from Waitaki

Commercial

Waitaki N.Z. Refrigerating, Ltd this week-end distributed jone of the best-produced and most interesting full mid- | year reports seen on the market for some time. Share--1 holders would have found j the contents also encouraging. i The directors are confident of a “very satisfactory” re-' suit—provided trading condi-j |tions continue as tney are! now; they also report a re- 1, cord kill. The merged operations of I the group are performing jvery well, and provided the ; necessary stability and flexibility. This enabled the company to be confident about the I future, “particularly if industrial problems can be solved ‘ when they occur in accord- ] ance with accepted practice , land current legislation without third party intervention.” The total sheep and latnb j .kill through the nine works 1 as at July 1 rose by 873,356 ! Ito 8,047,160, while the cattle ’ kill went up by 27,424 to ' 1194,071 I The kill of more than 4M!i in the three Otago works | where the company has been i accused of “exercising al<

monopoly” was ahead of last year by 600,000 and ahead of the previous 1973 record by 300,000. “While recognising the outstanding performance of the four chains at Pukeuri, we believe it is even more important to note that the 197778 service to suppliers in Otago would have been an I unrealisable goal had the 'three Otago works still operated under three ownerships,” the report s..ys. The demand in the United Kingdom for meat and byproducts is strong. “As it was felt that mutton would constitute an unwarranted trading risk the group from the beginning of May passed ownership of mutton to the Meat Board under its minimum price scheme. “Sales of lamb to diversified markets outside the U.K. have been substantial, but shipments against contracts with the Middle East are causing some concern. “Beef has had a fairly un- ■ stable trading pattern with i prices overseas, particularly in the U.S., dropping sharply I after the announcement of

that country’s enlarged import quotas.” But prices in the U.S. are expected to slowly improve. Referring to capital expenditure, the chairman (Mr R. P. Thompson) and the managing director (Mr E. J. Neilson), over whose signature the report is issued, say that the group is in the main up to date with the requirements for meat hygiene purposes.

The group has proceeded with the investment of substantial sums in fixed assets both for meat hygiene purposes and for modernisation or expansion.

Tekau Knitwear, Ltd, did not escape the effects of the decline in retail trading. This subsidiary will, however, make a modest but worthwhile profit contribution this year.

The Town House group continues in a sound position and progress on the new hotel in Auckland is good. Because the hotel group is not reliant on the tour trade which has declined, occupancy and profits remain at satisfactory levels. “The arrangements with the Spanish tanners in our tannery at Pukeuri are showing good benefits; the results in recent months and the prospects are gratifying. “Our other diversified interests in concrete masonry, concrete products, tanalised fencing timber, instant potato flakes etc., are all performing well, even if

some will return a lower profit in 1978,” the report says. Referring to shipping, the directors say that the Waitaki — converted to the carrying of containers — is now on a regular trans-Tas-man service. Because of demand it will soon be joined by the Dunedin. On the reported sale of the company’s interest in N.C.F. Kaiapoi, Ltd, the directors say:— “At the date of writing this report we are not certain as to the fulfilment of the agreement as we understand that Government departments have not agreed with certain aspects of the proposed sale.”