Crown profit 20% higher

Press, 26 February 1981, Page 18

Crown profit 20% higher

I PA Wellington Crown Consolidated, Ltd., announced in Wellington yesterday an unaudited tax paid trading profit for the six months ended 31 December of $660,000, compared with $549,000 for the same period last year. This was an improvement of $lll,OOO for 20 per cent after providing for taxation (last year $540,000). Total group turnover for the six months was $130.2M, which compares with $117.8M last year, an increase of $12.4M or 12 per cent. Satisfactory increases in turnover in nearly all trading units and divisions were recorded, but because of the particularly good season for farmers a continued increase in turnover in the second half is expected by the company. The company announced the payment of an interim ordinary' dividend of 8c ashare (last year 7.5 c a share, full year 16c) which will again be paid from capital reserves and therefore be tax-free in shareholders’ hands, except

for those shareholders who have elected to receive the dividend from revenue reserves. The dividend will be paid on April 6 ex dividend March 19. During the first half of this financial year fanner clients enjoyed a good season with abundant growth, and consequently there has been a hold-over of stock for sale later in the year. The company’s chairman (Mr R. B. Weir) said that this would benefit the group during the second half. There has been a substantial increase in the number of sheep being farmed, and the effects of this' increase will flow on through most departments and divisions.

The group’s liquidity is sound, and the company has been able to cope well with seasonable advances to its farmer clients. The merger offer to the Canterbury Farmers Co-op-erative Association, Ltd was well received by farmer and other clients in that area, and the full integration into the Crown Group is proceeding smoothly.

The added strength given to both companies should benefit shareholders, staff, and clients in the years ahead. The Crown board has been very pleased with the response to its offer, and looks forward to assisting the development of this important subsidiary. As recently announced, the offer to C.F.C.A. shareholders has been made unconditional, and the remaining shareholders have the opportunity of accepting the offer on the same terms and conditions until February 28. It" is Crown’s intention to acquire 100 per cent of the shareholding. Mr Weir said that it was difficult to predict the final

result for the full year, but in view of the good climatic conditions and the outlook generally, given reasonably good trading conditions, it is expected that the final results for the group will be good. The board, however, is still concerned over ever-increas-j ing costs, particularly in the! areas of salary, wages, fuel: costs, and borrowing.