Dalgety N.Z. ahead 36p.c.

Press, 16 February 1980, Page 18

Dalgety N.Z. ahead 36p.c.

PA Wellington Dalgety New Zealand. Ltd, increased" group net profit 5788.000 or 36.6 per cent to 52.9 M in the half-year to December 31. The profit was after providing for tax, but excluded minority interests. Earnings per share for the six months were 11.88 c (last year 8.69 cents). The chairman (Mr L. M. Papps) said: “Our first half year results reflect the buoyant trading conditions experienced throughout most rural activities. “Wool and livestock prices generally have remained firm, and favourable climatic conditions have produced an abundance of feed in most localities. “These conditions have enabled all sections of our rural operation to achieve improved results over the previous,year. “As our rural servicing business is fairly people-in-tensive, high salary levels and generally increased costs in all areas of operating expenses have been unavoidable. I “The percentage of finance costs to total expenses has been steadily increasing as a result of the continued rise in interest rates. This is a matter of concern as working capital requirements for rural advances, debtors and inventories continue to in-

crease,” Mr Papps said. Aotearoa Meats, Ltd, achieved a satisfactory profit increase as did the international trade division. C. B. Norwood, Ltd, experienced difficult trading conditions, but the result was an improvement on the previous year. This company is proceeding with a restructuring and development programme, which includes the introduction in March of the “Universal” tractor from Rumania. “Some aspects of the Alta Lipids activity have been scaled down to reduce costs. Prior to the end of the financial year further strategic decisions relating to these companies will be made,” Mr Papps said. An unchanged interim dividend of 5c a share will be paid tax-free on April 3.