COMPANY NEWS WOOLWORTHS’ YEAR

Press, Volume XCV, Issue 28259, 23 April 1957, Page 19

COMPANY NEWS WOOLWORTHS’ YEAR

Trading Outlook “Favourable” Trading outlook of Woloworths, Ltd., for the current year appeared to be favourable, said the chairman, Mr C. Scott Waine, at the annual meeting in Sydney last week. The returns so far. showed an improvement, he said. Easing of the import restrictions would materially assist, but the proportion of goods allowed to be imported was still well below the volume normally required. The opening of new stores would also assist earnings. The gradual movements of trade from the city to the outlying suburbs, however, was making it difficult to obtain a reasonable increase in the turnover of the main city stores. Costs Rise Though sales for last year showed a substantial increase, and gross profit rate was maintained, results were severely affected by import restrictions and the steep rise in expenses beyond the company’s control. It was estimated that between 85 and 90 per cent, of the goods were purchased in Australia, but many goods not made here had to be bought overseas. Imports now amounted to only a trickle, and the loss of trade affected normal earning capacity. ( New Stores Nineteen new stores were opened during the year—l2 in New South Wales, three in Victoria, three in South Australia, and one in Queensland. Fifteen stores were enlarged or relocated. The total number of stores in Australia and New Zealand at January 31 was 221. Ten new stores were expected to be opened during the current year—three in New South Wales, one in Victoria, two in South Australia, one in Queensland, and three in Western Australia. Eleven more stores were being constructed or enlarged or relocated. The current new issue of £2,887,330 was being made to finance this expansion. These funds would not be fully revenue producing for a year or so, and, as already indicated, it was not expected the dividends would exceed 12per cent, for some time. The company’s shares will be “ex rights” to the new share issue on May 15. The company is issuing 11,549,322 ordinary shares at par in the ratio of one for two held. Wattie’s Prospects “Encouraging” The prospects of J. Wattie Canneries, Ltd., in both the canning and quick-freezing industries “have never been more encouraging than they are today,” says the chairman, Mr J. Wattie, in a circular to shareholders announcing the new trading relationship with Tip Top Ice Cream Company (Auckland), Ltd. “The accounts for the year/ending July 31, when published will be convincing in this respect,” states Mr Wattie. In an earlier circular, states Mr Wattie, he wrote that the current year promised to be a satisfactory one. “I feel that the present moment is opportune to state that the season so far has more than fulfilled those expectations.” The announcement of the new trading arrangements with Tip Top closely follows that made by the Auckland company last week. Rothmans (Australia) Expansion Plans Rothmans of Pall Mall (Australia), Ltd., has received a loan of £500,000 from the overseas company to assist expansion. Announcing this in Sydney. the managing director (Mr Charles E. Hiltermann) said that the company's cigarette factory at Grandville had begun a two weeks’ partial close-down while machinery was being installed. The new machinery, valued at about £250,000, would enable the company to double the present output capacity, he said. The rapid growth of demand for the company’s products in Australia had made the installation of the machinery an urgent matter. Accordingly, London headquarters of the company had decided to halt expansion of factories in London, Canada, and New York, and divert machinery ordered for those factories to Australia, Mr Hiltermann said. SMITHFIELD MEAT MARKET Lambs And Wethers Dearer Lambs and wethers were dearer at Smithfield last week, according to the Imported Meat Trade Association’s weekly report on the market. Ewes, quoted for the first time this year, opened at a discount of 3£d (for 481 b and under) compared with wethers. Chilled beef prices sagged with the arrival of further shipments. Prices for New Zealand meat (ex store, London, for frozen meat; delivered to Smithfield for chilled beef) in the week ended April 17, with the variation since the previous week, were as follows: Sheep

Meteor Fragment Analysed A meteorite which fell in a garden in the Auckland suburb of Avondale late last year has been analysed in Australia by Dr. John Lovering, of the Research School of Physical Science, -the Australian National University, Canberra. A fragment of rocky material recovered after the fall has been confirmed by Dr. Lovering as definitely a meteoritic fragment. He says that the fragment appeared to be from the partly fused sub-crust on the meteorite, which formed as the meteorite plunged through the atmosphere.

d per Var’n. lb. d per lb. Crossbred Wethers, Maiden Ewes— Under 481b .. 18i N.C. 49-561b .. 17J +1 57-641b .. 16 4-i 65-721b .. 14J +4 Ewes - Under 481b .. 15 49-561b .. 131 57-641b .. 121 65-72Ib .. Ill — Canterbury Lamb First Quality— Under 281b .. 30 29-361b .. 274 4-2 37-421b .. 254 43-501b ... 231 4-1 Seconds—? Under 281b .. 291 4-2 29-36 .. 27 Frozen Beef First Quality OxHinds (145-1601b) .. No quote Seconds— Hinds (161-2101b) .. No quote Fores (145-2101b) .. 12 N.C. Chilled Beef Ox hinds (145-2101b) 241* -31 Ox fores (145-2101b) 112* -12 ’Average of quotations.