Wilson Neill earns more from exports

Press, 16 July 1983, Page 22

Wilson Neill earns more from exports

PA Dunedin At a time when exporting companies are reporting downturns in their trade it is this sector of the business of Wilson Neill, Ltd, which was the star performer in the March year. The managing director, Mr Robert Wilson, says in the annual report that export sales were 17.6 per cent higher at $29.4M, despite the continued downturn in demand for several major export products. “This demonstrates that our diversification has assured a continued growth in the export activities of the group,” he says. The most significant increase was the 326 per cent jump in sales in wool skin products, Windward Skins of Balclutha having commissioned a further expansion programme. This is the Wilson Neill export division’s twentieth year of operation. The back cover of the annual report is a full-page picture of the blue-fin tuna

mother ship, Daniel Solander, which represents a large venture into a fish resource. The company also holds an interest with Nelson Saudi and Japanese companies in the South island Deep Water Fisheries, Ltd, which has received an allocation for orange roughy, squid, and oreo dory. The company has a leading role in the export of frozen berry fruit, with well over 1000 tonnes shipped last year. Wilson Neill is the largest exporter of South Island honey, Mr Wilson says, and a recent addition to horticultural exports is dried sphagnum moss. “We have a number of interesting and exciting developments ahead and this new financial year will indeed be both busy and constructive, helping to pave the way for both solid growth and profitability,” Mr Wilson writes. Fierce competition in the retail area was the reason for the 14.7 per cent drop in Wilson Neill after-tax earnings, according to the annual report. Although turnover in the appliance division increased 11.8 per cent, most of this occurred in the first three months of the March year. Demand fell with the freeze, according to the chairman, Mr J. A. Valentine. Turnover of the liquor division increased marginally. Marketing became increasingly competitive, but results were maintained and the division “continued to make an excellent contribution to profits.”

Mr Valentine says the balance sheet shows a considerably improved financial position. Current assets at $14,251,350 are down ?2.25M, in spite of $500,000 being placed on deposit. Stocks are ?1.39M less, and debtors 51.45 M down. “The reduction in stocks has been achieved as a result of close management control of stock levels and in spite of an increase of over-all turnover. Debtors are less, partly because of the effect of improved controls, but mainly because of a decision to reduce the investment in hire-purchase debtors.” Current liabilities are down ?2.42M, the main reductions being in the bank advance and other unsecured borrowing.” As a result the current ratio has i mproved to 1.54 this year irom 1.41 last year. Shareholders’ funds totalled $10,959,918, the increase of $780,210 for the year representing profits retained m the business. Looking at the year ahead, Mr Valentine says the need to reduce the external deficit still further meant an increase in descretionary spending could not be expected. As previously reported, the tax-paid profit before extraordinaries was $1,257,756, 14.7 per cent below last year’s $1,474,961. Taxation was $469,300 ($842,840) and group turnover was $75.3M ($71.5M). The directors recommend a dividend of 8.75 c (17.5 per cent), unchanged. Of this, 6.3 c would be tax free, compared with last year’s completely tax-free pay out.