Sanford sees lower profit

Press, 3 December 1982, Page 16

Sanford sees lower profit

PA Auckland It will be difficult for Sanford, Ltd, to achieve any improvement on last year's profit in the current year, the company’s chairman. Mr W. D. Goodfellow, said in his annual review. In his review, the company’s managing director, Mr Neil Mills, said the economics of inshore fishing are becoming difficult. Operating costs were rising and premium species of fish were in short supply and difficult to catch in volume. Before the first oil shock, fuel was 5 per cent of total operating costs against 33

per cent today, he said. The Budget'removed sales tax exemptions on most items used for fishing and resulted in an unexpected sales tax cost of $30,000 for boats being re-engined on Budget-night. Export freight rates continued to rise, and on some substantial exports freight could represent 50 per cent of the total selling price. During the current year two new 18m trawlers were being built and a new coolstore will open next month. As reported, Sanfords profit fell $54,000 to $1,559,900 last year.