Big rise expected in A. Yates sales

Press, 10 April 1980, Page 22

Big rise expected in A. Yates sales

PA Auckland Arthur Yates and Company, Ltd, is well on the way to a large increase in sales this year, judging from figures released by the chairman CMr C. J. Keppel) at a well-attended annual meeting. Sales in the first four months (including those of recently acquired Hodder and Tolley. Ltd) were up more than'24 per cent. The company was budgeting for a total sales figure of $65 million for the year to November 30, or 127] per cent higher than thej previous year. Mr Keppel described 197879 as a year of “solid growth and expansion” — highlighted by the Hodder and Tolley acquisition, and the deal with Pioneer HiBred International, of Des Moines. The Yates group virtually doubled in size with the purchase of Hodder and Tolley — a purchase which “offers exciting prospects of growth in the future, ’*■ said Mr Keppel.

The placement of shares to Pioneer, “with a commercial technology agreement,” would provide continuing benefits to Yates, he said. Profitable expansion remains one of the prime objectives of the board and management, and the offer for Tauranga Egg Marketing Co-operative. Ltd, “the operations of which would meld nicely with the enlarged Yates group activities,” Mr Keppel said. Reservations expressed at |the previous annual meeting [had been proved wrong, and everyone connected with the company could feel both pleased and proud about the year’s results, he said. ■ However, he was again conservative about the prospects for the present year, despite the leap in sales.

“I am sure that I don’t have to tell you how dependent many aspects of our business are on weather conditions, and the untimely wet. conditions over the past months have impacted badly on crop harvesting, and also

on the home garden,, and' peat areas. The effect of some of this will be felt later on our trading year,” Mr Keppel said. However, he said that “with increased opportunities available to our enlarged company” shareholders could look forward confidently to a further year of “reasonable growth and profitability.” Mr Keppel, said . that the company had sources which would allow the payment of tax-free dividends for the next three years and it was hoped to build those sources during the three years to allow tax-free payments to be made some time after! that. I

Shareholders were told by Mr Keppel that the next annual report would, “in all likelihood,” include a set of current cost accounts. The board had given the idea much thought, and although he could not promise inclusion he was confident such accounts would eventuate.