Commercial Good result by Ravensdown

Press, 26 November 1979, Page 22

Commercial Good result by Ravensdown

Members of Ravensdown Supply Co-operative, Ltd, have to date received a fertiliser rebate of $1.35 per tonne, a tax-free dividend of 10c a share, and those who have paid up more than 25c a share received interest at 12 per cent. The annual accounts for the nine-months period ended May 31 show a group net profit of $2,37u,32u. After deducting the 40 per cent interest of the minority shareholder — New Zealand Farmers’ Fertilizer Company, Ltd, — amounting to $962,060, profit attributable to members of the holding tomoanv was $1,408,260. Of this profit $288,900 was paid out in rebates, and

$1,119,360 is being carried, forward. The tax-free dividend was declared from a capital pro-1 fit of $1,000,331 made during the period on the sale of Kempthorne Prosser shares. The profit can be regarded: as satisfactory, says the i ichairman (Mr P. H. El-1 worthy) in his review, “par-, : ticularly as only seven' months income is included from the subsidiary, Ravens-! down Fertiliser Co-oper-I ative, Ltd.” “However, sales for the seven-months period covered by the accounts were higher in proportion than I those for the other five : months of the year,” he says lit was therefore not ex- i

.pected that profit can be i maintained at this for a full year. Mr Elworthy says that the propsectus promised “rebates applying at the latest by the third year, of operation,” and the company had i achieved this after seven I months trading. ! “However, we are con■scious of the need to consolidate and it is our intention i to achieve this during these first years,” he says. The accounts show share holders’ funds of $5,962,209 — comprised 52.2 M paid-up capital (issued capital is S7.BM), $2.5M capital reserves, and SI.2M retained earnings. Shareholders’ equity is 19.7 per cent.