Late Commercial SEASON’S PROSPECTS

Dominion, Volume 34, Issue 119, 13 February 1941, Page 10

Late Commercial SEASON’S PROSPECTS

New Zealand Refrigerating Company, Limited Dominion Special Service. ■ CHRISTCHURCH, February 12. Reference to this season’s prospects was made by the chairman of directors, Mr. W. 11. E. Flint, at the 53rd annual meeting of the New ’’Zealand Refrigerating Company, Limited, today. Many factors which helped last season would not, he said, be operating this season. The value of two of the company’s main products, tallow and casings, was likely to be substantially less, while markets for many other by-products were increasingly affected by quota restrictions, and shipping difficulties. Costs of all materials used in processes had risen to a marked extent. Wages and salaries had been increased, and demands for a further substantial increase in factory wages were under consideration. It was hoped that the works efficiency councils- set up recently would help to smooth out difficulties.

Prices for by-products had been good, and a record volume of stock had passed through the works. Gross earnings had been considerably higher, but greatly increased taxation rates here and in England had absorbed nearly all the increase in gross profit, While increased taxation was inevitable in war, it was true that the proportion of profits now taken from industry in taxation was so high as to make it impossible for trading companies to build adequate reserves to provido against market fluctuations and replacement costs. The rebuilding reserve was drawn on to the extent of £15,907, and the proposed appropriation to it of £15,000 would bring the reserve to £44,200. There had been a decrease of £103,701 in secured creditors, resulting from the changed method of trading, by which payment was made in New Zealand for the bulk of the goods on or before shipment. This decrease was reflected in the large increase of money at short call, short term investments, and the balance with the bankers—higher by £255,31(5. Works and plant figured at £562,251, a reduction of £31,028. The reconditioning of freezing stores had been completed, and a new store at Imlay was being erected. Consignments unrealized and stocks in the works tvere considerably less than a year ago. The company’s main activities in England had been suspended by the war. but of the two subsidiaries, Towers and Company was expected to give a reasonable return on the investments in it, and Field and Company was carrying on the distribution of casings with little interference from normal, apart from the loss of markets and restricted importation of casings. Directors re-elected were Messrs. W. H. E. Flint and W. H. Clark.