Farrier Waimak sees static trading

Press, 11 October 1982, Page 29

Farrier Waimak sees static trading

Farrier Waimak. Ltd. is continuing the search for expansion, the directors say in the annual report for the year ended June 30. However, they expect operations in the current year to be relatively static.

Sales of readymixed concrete and aggregate are not expected to rise, and they have budgeted on a road construction and sealing turnover similar to the past vear.

The report refers to the successful tender to resurface 10 tennis courts at Wilding Park in the “Plexipave" surface.

The covering is a texture coating used mainly for sports surfaces, which an Australian company has licensed Farrier to market. Work on the courts was scheduled to begin in September. and Farrier expects further business in this area.

In their review of plant and equipment, the directors say that 22 units of varying

size were sold or traded during the year for $365,881, of which $22,117 is over original purchase price and available for distribution as taxfree dividend. Ten additions to the fleet plus amounts spent on nine rebuilds, total $746,456. Farrier’s associate in the West Coast coal venture has done considerable work in evaluating the coal seam.

The directors have authorised a coal geologist to provide a report on the seam and its potential. As reported, net tax paid trading profit for. the year was $77,021 ($76,070) after allowing for depreciation of $65,412. Taxation payable rose $40,054 over last year to $62,242. Sales increased by $406,644 during the year, with contracting making a reasonable return in the second half after its loss in the earlier period. The directors recommend a dividend of 12.5 per cent on ordinary shares, payable on

October 28. Eight per cent of this will be paid from capital reserves and the remainder from revenue reserves.

The report notes the resignation of Mr V. C. North who has been on the board for the past nine years. He will be replaced by Mr H. W. Richardson who will come up for re-election at the annual meeting.

The directors propose to increase the board number to seven, to allow Mr K. G. Richardson to join. Since the interim report, Richardsons, of Invercargill, have increased their shareholding to more than 50 per cent The chairman (Mr C. W. Evans) says that in view of this large stake, it is in the interests of the company and shareholders to appoint a representative of Richardsons.

Accordingly, he relinquished his 20-year-old position to Mr H. W. Richardson. However, Mr Evans will continue to serve on the board.