Capital profits helps Crown result

Press, 30 August 1979, Page 19

Capital profits helps Crown result

PA Wellington . The stock and station subidiaries of Crown Consolidated, Ltd, returned satisfactory results, in the year tb June 30 although the caution of farmers in controlling expenditure on farm njerchanidse was noticeable, says the chairman (Mr R. B. Weir) in a preliminary report. . The group result was materially upset by the meat division result The fall in North American beef prices resulted in meat stocks at balance date being valued below cost. ‘This was after record prices being paid to farmers for beef in the March-April period. .' “Substantially increased costs, particularly wages.

fuel and interest will have to be met from increased business during the coming year,” says Mr Weir.

“The assistance announced for the agricultural sector in the recent Budget was welcomed by farmers with minimum prices being set at a much higher level. Devaluation also helped,” he says. “The outlook for the nation’s main agricultural products in the immediate future is bright” Group net profit rose 92.7 per cent to $3,618,345 including realised capital profits of $1,863,640 ($308,171 previously) and depreciation recovered of $97,523 ($47,651). The trading profit increased 8.8 per cent to '51,657,182.

Taxation rose $678,409 to $1,087,529. Trading revenue and commissions increased 20 per

cent to $19.1 million. Total group turnover increased 22 per cent to $237.3 million. Total merchanidse sales were up $5.5 million and commission sales improved $37.3 million. A final tax-free dividend of 7.5 c a share is recommended on the increased ordinary capital after the bonus issue of one-for-five on April 24. The dividend makes an annual rate of 15c a share (15 per cent) representing on post-bonus capital an increase of 1.5 c a share on the 1978 dividend. The dividend is payable on October 30.