Strong growth for Allflex

Press, 11 July 1980, Page 8

Strong growth for Allflex

PA Wellington The extremely strong sales growth, from 53.6 M in the 1978 financial year, to 85.5 M in 1979, and on to SB.6M last year . shows little sign of abating says the chairman of Allflex Holdings Ltd (Mr John R. Burford) in his annual review. ■

“Changes occur front time to time in various market areas” , hesays, ■ “but the diversity- .of countries supplied and the possibilities of sales do ,new : areas suggest continuing, expansion. “Many variables exist, however, and changes in one or more of these could react to 1 the disadvantage of the company. . Increasing costs within New Zealand are a problem, and growing costs of transporting raw material to New Zealand, and our finished product around the world; are a disturbing aspect. .. . “However, these inflationary problems are not confined to New Zealand

land we know that our comIperitors in other parts of the (world are confronted with i the same difficulties,” says the chairman. As already reported, in the year ended March 31 the group increased net trading profit by $423,905 (33 per cent) to $1,702,500. This represents a return of 26, per cent on total assets erhployed and 33 per cent oh shareholders’ funds. Shareholders’ funds represent ,78 per cent of total assets.’ A final dividend of 8.5 per cent (4.25 c a share) is payable oh July 31. This is in line with the forecast in the prospectus to the company’s public issue in February this year. In his review Mr Burford says that seven new injection moulding machines were commissioned during the past year and in the current year the company is planning a further - addition of 14,500 square feet to the Palmerston North factory, to

cope with foreseeable demands on production. A 1 1 f 1 e x Manufacturing Company in Syracuse, New York, is also being set up to produce a new type of tag for the American hog market. It is also anticipated that this new company will in the longer term, provide a back-up for New Zealand production as well as assisting the New Zealand plant to meet . the expected additional demand from the Diamond Shamrock Corporation in relation, to its insecticide tag programme in the United States of America. Mr Burford says that the year has seen a small decline in the rate of profitability per dollar value of sales, largely because of a decision taken more than a year ago to hold selling prices in the United States of America “where we have seen strong efforts by our competitors to regain their declining share of the market.”