C.F.M. to pay higher interim dividend

Press, 15 April 1980, Page 36

C.F.M. to pay higher interim dividend

The sheep, and lamb killing season is proceeding smoothly and results to date indicate that the annual profit of the Canterbury Frozen Meat Company, Ltd, after ineluding extraordinary items may exceed last year’s profit, the chairman (Mr I. E. O. McKellar) announced yesterday. The directors have declared an interim dividend of 6.5 c an ordinary share. The dividend which is half a cent higher than last year’s interim to be paid from realised capital profits and is tax-free in the hands of shareholders unless they have elected otherwise. The realised capital profits arise mainly from the sale Of shares . in N.C.F. Kaiapoi, Ltd, and on the present basis, allowing for shareholders who have elected to receive dividends front taxable profits, it is estimated that tax-free dividends could be paid for the next two years from this source.

To date killing figures for sheep and lamb total 3,057,569 as compared with 2,919,686 for the same period last season, and the final throughput

should be considerably higher than for 1978-79. However, the high killing predicted at the start of the season may not eventuate, in some measure because of the retention of ewe lambs by farmers who are increasing their flocks.

As forecast, cattle killings are lower than last season: 43,740 as compared with 62,166 for the same period in 1978-79. This appears to be a continuing trend that is unlikely to be reversed in the near future, Mr McKellar said. The dividend will be paid on May 1, ex dividend April 21.