Cerebos salmon farm problems

Press, 23 November 1987, Page 15

Cerebos salmon farm problems

A salmon farming project at Lake Grassmere, near Blenheim, has only achieved moderate success so far, according to the annual report of Cerebos Gregg’s. The managing director, Mr J. D. Barbour, says that there have been continuing problems with water quality. The project is being run by Dominion Salt (N. 1. the company equally owned by Cerebos and Skellerup Industries. Trials in farming Chinook salmon at Lake Grassmere have continued, with regional development grants covering 50% of the trial costs, Mr Barbour says. Development costs of $485,000 have been written off for the first year of the salmon project. A big effort is being

made to install an economic water filtration system, which is crucial to the success of the farm, he says. A joint venture project for an experimental pilot plant for moulting and processing paddle crabs has also been started. The food business is poised for growth after a period of consolidation since the merger of Cerebos and Gregg’s three years ago. New products and business developments are being investigated. The deregulation of the economy and the prospect of imported competition makes this change in emphasis essential, he says. Significant capital investment has been approved in high technology areas which will create new products for the market this year.

As reported, the total group net profit rose 15.6% to $4,603,000 in the year to July 31’, compared with the previous corresponding period. There were no equity profits ($176,000 previously) or extraordinary items ($135,000 profit). The profit was after providing $2,696,000 more for tax at $5,245,000 and $562,000 more for depreciation at $1,766,000. Minority interests took $1.5 million more at $1,642,000.

Sales increased 32.7% to $99.9M, leaving a gross pre-tax profit 80.8% up at $11.5M.

A recommended final dividend of 10.5 c a share increases the annual rate from 9.5 c to 10.5 c a share (21%). The dividend requirement is $1,858,000 and it is covered 2.5 times by the profit.

Shareholders’ funds improved $3,757,000 to $26,598,000 including ordinary capital up $437,000 to $8,937,000