REDUCTION OF LOSS

Bay of Plenty Beacon, Volume 4, Issue 163, 3 October 1941, Page 5

REDUCTION OF LOSS

WHAKATANE PAPER MILLS

PROSPECTS ENCOURAGING

A net loss of £13,180 is reported by Whakatane Paper Mills, Limited, for the year ended June 30. This compares Avith a net loss of £72,991 in the previous year, the first manufacturing period, and is struck after providing £36,163 for depreciation (against £33,797), debiting £8716 to debenture interest account, and £10,259 loss incurred through the enforced cancellation of some of the original forward delivery contracts for Swedish chemical pulp. Accumulated losses at June 30 total £86,174.

The report states that the second half of the financial year resulted in profitable ojDerations. Gross sales for the year at £321,855 Avere more than double the figures for the previous period, and as against the former gross loss of £5657 the company earned a gross profit of £70,430. The company Avas now within measurable distance of earning the margin of net profit permissible under price control.

Production for the second manufacturing, year was 9300 tans, or 2300 tons higher than that of the previous year. Board to the value of £11,< 929 was shipped overseas. Inquiries had been received from Java, South Africa and India, and the jirospects of building up an ex'port trade were encouraging. In June £2000 was paid off the London group debenture interest account, since when arrears, which at June 30 stood at £9762, were being reduced at the rate of £1000 a month. lit is expected thai; the arrear will have been paid off by! June, 1942, in addition to the current financial year's interest of £3502