Crown ahead 32p.c.

Press, 26 February 1980, Page 18

Crown ahead 32p.c.

PA : v - Wellington " Crown .Consolidated, Ltd, stock ' z and station agents, earned an unaudited net trading profit for the six months to December 317 of $549,567, ' compared with $415,788 for the first six months of last year — an improvement of 32.2 per cent. The profit was after providing $449,645 for taxation (last year $289,000). Total group turnover for the six months was $117.8M, up S23M from last year’s $94.8M, and an increase of 24.2 per cent. | Turnover increased in all (trading units, and divisions |the directors say. An unchanged interim

ordinary dividend, of 7J per cent. (715 c a-- share) will again be” paid from, capital reserves, and it will be taxfree in shareholders' hands except, for those shareholders who have elected to receive .the-.' dividend from revenue-reserves/ ■' The dividend will .be.; paid on April 7, ' - . \ s The. first'.haif of thti/firiancfal year: has been an '■'exceptionally'good season for farmer clients with abundant growth and this has continued into the first months of the second’half-year the company .says-; ;'....

unusual conditions have - changed- the. pattern of livestock sales in that many farmers have held their i

[stock for sale later in the [season. i Advances to farmer clients have risen mainly because of the late season,and buoyant prices of livestock. This has affected the group’s liquidity. ........ The high costs' of borrowing the additional funds required to finance, and support, farmer clients is causing concern. This, coupled with other substantial increases in costs, particularly in. the .areas of. salaries .and- wages and motor running costs, is having an effect on theipildgeted results. However? it is expected by- the directors, that this year’s trading- result will be. ahead of last year.