Good profits — Farmers’

Press, 6 May 1980, Page 34

Good profits — Farmers’

The New Zealand Farmers’ Co-operative Association of Canterbury, Ltd, .is .experiencing a very busy period, but profitability is at a good level, particularly so in the stock and station division, says the chairman (Mr H. W. ReveH) in a detailed half-yearly report. Turnover in the.sStock and station division is very strong, he says;, increased numbers of livestock and weight of wool are being handled, and all .grain and seed-cleaning facilities are working to capacity. Export sales are running at a higher level than last year. Farm merchandise sales have also been very good in the six months ended January 31, and earnings from the division are expected to be at a record level in the current . financial year, Mr Revell said.

The amalgamation of retail activities, which will lead to a chain of retail stores trading under the banner, “Farmers’ and Haywrights,” has generated considerable expense of a nonrecurring nature • and will continue to do so in the second half.

Amalgamation expenses were charged in the halfyearly accounts, but no profit from Haywrights has been included; this will be consolidated in the group results for the full year. Farmers’ are taking steps to acquire compulsorily the 2 per

cent of the Haywrights capital it does not yet own. The only Haywrights store still operating in the North Island is at Masterton, and generally the recent withdrawals from the Auckland area have been conducted satisfactorily, Mr ■■ Revell says.,./ “Generally sales volume (of the retail division) is in line .with budget and the costs of closures and withdrawals from the North Island should not exceed the provisions that' were made in the ‘ Haywrights 1979 accounts. It is intended that all of the ‘ costs of amalga-

mation will be within this year's accounts, and that the new financial year, which is the the centennial year for the company, will be clear of. any expenses carried over,” Mr Revell says.

“Riverland Meat Company, Ltd, previously Sadds Meat Packers, Ltd, continues to operate extremely well, and will make a good contribution to profit for the full year. “As part of the requirements to upgrade to export standard by 1981 new covered sheepyards and additional chiller space have been completed. Currently, alternative access to upgraded cattle yards and the new sheep yards is being carried out. Plans are in hand to extend and upgrade the slaughter hall and the remaining chillers. “The trading operations of the motor division at Christchurch, Rangiora, Leeston, and Blenheim continue to operate at levels that are lower than previous years, with considerable pressure on operating costs, and a major endeavour to improve results.- Although car registrations may increase during 1980 they will still be significantly below those of a few years ago.” As announced, trading profit for the period rose from $533,000 to $550,000 and capital profits from $173,000 to $689,000. The interim dividend was raised from 7| to 8 per cent — half of the 4c a share will be tax-free.