Excellent half for Reid Farmers

Press, 3 February 1982, Page 19

Excellent half for Reid Farmers

The unaudited group profit before tax of Reid Farmers, Ltd, for the half year ended December 31 was $708,000, an increase of 28 per cent on the profit of $551,000 for the corresponding six months in 1980.

The tax provision was $283,000 ($220,000 in 1980) leaving a tax-paid profit of $425,000, compared with $331,000 (adjusted to a comparable basis before rebate) in 1980, a rise of 28 per cent. The chairman (Mr R. R. Hudson) said that the volume of wool sold had been very

satisfactory and for the six months was well ahead of the comparable period last year. The new urban real estate division was progressing well and had contributed good earnings for the six months, as had the rural division. The earnings of the merchandise, grain and seeds and stock departments were all above last year and . in line with budget. A contract had been let for a new store to be built in Mosgiel, and this was expected to be completed by the end of April. North Otago was experiencing an excellent growing

season and earnings by the wholly-owned subsidiary, Stringer and Company, Ltd, Oamaru, were ahead of budget, Mr Hudson said. Dunedin Wool Dumpers (1977), Ltd, in which the company has a major interest, was down slightly on last year but a comparable return is expected for the full year. The R.F. Wool Scour, where the company has a 40 per cent interest was receiving its full share of wool for scouring in a period of reduced scouring activity. Mr Hudson said clients’ liquidity was slightly better than last year, and it was very evident that, but for the Government’s S.M.P. policy, many farmers would not be able to meet their annual commitments. It was expected that the company profit for the full year would be satisfactory and ahead of last year, Mr Hudson said.