BIG INCREASE IN PROFITS

Southland Times, Issue 23443, 25 February 1938, Page 3

BIG INCREASE IN PROFITS

Southland Frozen Meat Company INVESTMENTS MADE IN LAND An increase in the gross profits for the year by £20,000, with an increase in expenses of £3OOO, leaving the • net amount earned £17,000 more than the previous year, was announced by Mr John Gilkison, chairman of directors, at the annual meeting of the Southland Frozen Meat Company yesterday mommeeting was attended by the chairman, the general manager (Mr A. Derbie) and 16 directors and snareholders. , . ... “Since 1881,” Mr Gilkison said, in moving the adoption of the report and balance-sheet, “this company has carried on its business with the usual vicissitudes of a pioneer enterprise, and its progress towards prosperity has been a reflection of the development of the province of Southland. The gross profits earned for the year under review are up over £20,000; expenses show an increase of £3000; leaving the net amount earned £17,000 more than last year. WOOL CARRIED OVER “A number of factors contributed to this result. We carried over a large amount of the previous year’s production of slipe wool, and this was sold at the top of the market along with the bulk of the 1937 season’s output, so that we took the fullest advantage of the high prices then ruling. The British market for lamb and mutton ruled relatively firm and towards the end of the year appreciated 1 considerably, due to an absence of Australian lamb. Australian growers had a backward season and our late shipments accordingly realized good prices. Pelts, tallow, casings and other products sold at a high level; thus we can describe 1937 as a good trading year for exporters. “At the moment we have the reverse side of the picture, pelts worth 38/6 a dozen last year are unsaleable at 20/a dozen; slipe wools are down 35 to 40 per cent., and other products are also affected. We market a lot of our goods in the United States and as that country is suffering a severe setback, we are also affected. Unless we see a recovery in the value of wool, skins, hides, etc. New Zealand exports of those lines will be down from £8,000,000 to £9,000,000.’ Mr Gilkison said that since the last annual meeting the opportunity was taken to increase the capital of the company, >and at a meeting of shareholders held in September the directors’ recommendations to write up certain assets and issue further shares were confirmed. When reviewing the annual accounts at the end of the year the directors made certain adjustments. The item of sundry creditors which included provision for contingencies showed a reduction of £59,000, and the amount of £BO,OOO disappeared from the reserve account. The paid up capital now stood at £340,777, and the balance at credit of profit and loss account was £58,847 14/-; landed properties, buildings and plant appeared at £272,993 2/-, and outside investments at book value £126,954 13/8; floating assets comprising stocks and stores £91,823 19/3; cash in hand, on deposit and in London amounted to £88,214 12/4, and sundry debtors and mortgages £32,144 7/2. In accordance with traditional custom, all stocks, stores and properties were valued conservatively and due provision made for marketing and other contingencies. MATAURA AND MAKAREWA The works at Mataura and Makarewa were fully equipped in a modem manner, and the company was able to process the various products to secure highest quality goods. During the coming year an extension of the company’s operations was contemplated to produce a high quality feeding meal in the form of nuts or cubes, composed of meat meal mixed with other ingredients. The highest authorities on animal nutrition agreed on the necessity for increased feeding to in-lamb ewes, to ensure good lambing, stronger lambs to mature earlier and an increased wool clip. The increasing difficulty of growing rape and other green feeds for finishing off lambs was known to them all, and it was planned to provide a. cheaper means of finishing off lambs than by expensive and risky green crops. It was hoped to have supplies available for the coming season. One of the company’s activities extending over the last seven years had been the prosecution and financing of investigations resulting in the cobalt cure being perfected for a deficiency ailment affecting lambs. This had cost the company nearly £2OOO, but the results attained were of outstanding importance to many growers. LAND DEVELOPMENT Having in mind the development of the province, the company acquired about three years ago an area of 2500 acres rolling downs, mostly in tussock, lying between Hedgehope and Waimumu. In the short space of three years the whole area had been, broken up by plough, fenced into paddocks, limed, cultivated and sown in various crops. Suitable buildings, wool-shed, yards, dip and employees’ cottages had been erected, and he was glad to say that the land had responded well to the treatment given it, and from now on would be a revenue producer. The company had recently acquired another area of 2400 acres which it intended to treat in a similar manner, cut up into areas from 400 to 500 acres, and when these areas were fully productive it was hoped to settle young farmers thereon. Less the uninformed accuse the company of being land grabbers he desired to say there were further areas of tussock land in the same district awaiting development. “Recently we were induced to take an interest in the matter of deep tillage of close-bottomed land with an implement known as a gyro-tiller,” Mr Gilkison continued. “Many of our friends in the Waimea Plains area were desirous of securing the services of such an implement, and the directors accordingly promoted a small company to purchase and operate a gyro-tiller. The machine commenced working in November and a number of fields tilled are now under various crops, all showing the undoubted advantage of deep tillage on pan land. LONG TERM INVESTMENT

“It is not to be expected that such a plant will be operated profitably, but rather is a long term investment'to increase the carrying capacity of a large acreage of land; which in its present

state suffers from drought in summer and from excessive water in winter, all due to a somewhat impermeable subsoil. “I have outlined briefly some of the company’s interests and activities to show that we are doing something towards developing our province, and that we are always ready to pursue any course calculated to assist greater production. Our production of lamb can be greatly increased, we expect our output to grow and I can assure you we will always be prepared with the necessary accommodation and facilities for handling any number.” Mr W. Grieve seconded the motion which was carried. Mr Grieve expressed the thanks of the directors and staff for the capable manner in which they were conducting the business of the company. He also congratulated the directors on the comforts it had provided for the employees and added that everything possible was done to maintain harmony between the employers and employees. The retiring directors, Messrs L. W. Spencer and D. Macpherson, were reelected unopposed. Messrs Cuthbertson and Osborne were reappointed auditors. A note of appreciation of the services of the general manager and staff was carried with acclamation.