Redundancy payments cause Affco loss

Press, 17 November 1981, Page 26

Redundancy payments cause Affco loss

PA Auckland The Southdown meat works closure cost Auckland Farmers Freezing Co-opera-tive, Ltd, $4,144,942 in redundancy payments to 950 employees. Dividends and shareholders rebates for the June 30 year have been dropped. The extraordinary redundancy item in the accounts wiped out the group operating profit of $3,409,927 and the $87,882 profit on the disposal of assets. It took the company into a loss of $647,133. After taking into account the 121,316 surplus brought forward from the previous year and the $87,882 transferred to capital reserves, a $613,699 loss is carried forward. The stock kill figures show the effect of the three weeks

of industrial action over the Southdown issue at the other three works, which the directors say severely affected net income (1980 figures in brackets). • Cattle 302,852 (340,311); Vealers 3881 (7191); Bobby calves 322,408 (374,518); Sheep 767,145 (814,289); Lambs 1,953,893 (1,993,669); Pigs 31,774 (59,827). Group net operating profit for the year before extraordinary items rose from $2.7 million at $3.4 million. Depreciation rose from $3.6 million to $3.9 million. Interest cost was up from $3.5 million to $3.9 million. Current liabilities rose $lO.l million to $56.7 million. Overdraft, which was $29.2 million in 1980 rose to $31.3 million at the June balance date, and the company has

taken up short-term, advances of $7.2 million from overseas and $1 million in New Zealand currency. Long term liabilities are almost static at $31.8 million. A new capital reserves item is land revaluation put at $2.5 million. This results from freehold land being revalued to Government Valuation. Fixed assets at Southdown remain in the accounts at book value. Much of the plant and equipnient is considered suitable for use at the other company processing plants or is for sale. Total shareholders’ funds were $33.8 million (32.1 million in 1980). Current assets were $63.4 million ($54.4 million) and fixed assets $58.2 million ($55.1 million).