DALGETY AND CO.

Evening Post, Volume CX, Issue 144, 16 December 1930, Page 14

DALGETY AND CO.

A DIFFICULT YEAR

(From "The Post's" Representative.) LONDON', 14th November. Messrs. Dalgcty and Company, in dealing with the seasonal conditions in tho various countries in which the firm have interests, remark that in New Zealand the season has been "patchy." The wool selling season has been a very trying one, as with the exception of a. partial recovery in prices during the closing months, the market hus had a steadily declining tendency. Production figures show a decrease in Australia, but in New Zealand a slight increase for the year (ended 30th June last) and a lighter clip is looked for next season. For 1927-28 the profit was £351,887 and for 1928-29 £422.590; but for the year to 30th June last the figure was £235,940. By a final payment of ss, tax free, the ordinary dividend is again 10 per cent., but the 7 per cent. bonus paid last year is not repeated. ■ The allocution of £25,000 to writing down premises and of '£25,000 to the staff provident fund shows no change; but there is no bonus to the staff, which last year received £60,000. Net result is a larger carry-forward—£23S,BßS against £227,942. •" Commenting on the report of "the greatest wool sellers in the world," the "Financial Times" says: "Dalgety and Co. have passed through a difficult year. That was -inevitable. As the report explains, the Wool-selling season was a, very trying one, for, with the exception o.f a partial recovery, in the closing months of the period, the tendency has been steadily downward. Shareholders in receipt of a reduced interim dividend must have beeu prepared for the heavy drop in profits recorded in the latest annual accounts. Trading for the twelve months to June last resulted in a surplus of £927,000, which is only about £200,000 less than that for the previous year, but net earnings, after provision for expenses, interest charges, and taxation, have come down precipitately from £422,400 to just £236,000. To have earned even 11 per cent, on the total issued share capital may be accounted some achievement in such very disturbed times. Shareholders suffer, as they were bound to do, for, while the tax-free dividend is maintained at 10 per cent., it is unaccompanied this time by the 7 per cent, bonus of recent years. On the staff also sacrifices are imposed, jis the £60.000 bonus of a year ago is Jiofc repeated. After the usual provision for the writing down of premises and the provident fund, about £11,000 is added to undivided profits, bringing them up to a sum in excess of the past year's net surplus. That, after all, is a remarkable result. The outlook for the current year ■fs not unfavourable. Copious rains have fallen in most of the Australian States, and while wool conditions are unsettled a bumper wheat crop is promised. It looks as if the current financial year might be one of slow but steady recovery."