Canty Roller recovers

Press, 26 April 1979, Page 27

Canty Roller recovers

i The profit of The CanterI bury Roller Flour Mills j Company, Ltd, in the year to (December 31 must be reIgarded as satisfactory after a (poor first half and a fall in • sales of flour products and (stock food, says the chairJ'man (Mr Jack Brand) in the “ annual report. ;,• The sales of flour products ‘ and stock food fell 15.3 per cent to 7680 tonnes, primarily ; because only 230 tonnes of ' flour undersaies was offered • to the company by the Wheat * Board, compared -with 940[ ' tonnes previously. Il ! The big improvement in; • 1 profitability in the final six ’ months was caused by a ; “number of factors, the main i I ones being the recovery of 1 : | back-period permitted price ’1 '[increases from July 17, the i ([profit from increased flour [(sales and improved milling ; I efficiency resulting from a I •.[better extraction rate. i | “It should be noted that < [the delays of the Trade and i (Industry Department in It [completing the pricing .of in-Is ['dividual mills resulted in the It i! mill working at an un- [ [economic level for much of 11 (the first half of the year, j] [ “Now that the new pricing system has been com-1S Ipleted, mills can submit in- c \ creased costs as they occur, 11

thus stopping back payments and the violent fluctuations in profitability experienced in the past. “In addition to fully maintaining the mill and plant in good condition, the company has brought into use a small pelleting machine for stock foods, thus better catering for customers’ requirements,” Mr Brand says. As reported, group net profit rose 13 per cent to $32,811 in the year to December 31. The profit was after providing $1673 more for tax at ’527,445. but $10,236 less for ’depreciation at $10,894. A recommended steady annual dividend of 15c a share (15 per cent) requires $lB,OOO, on capital increased •by the one-for-.one bonus issue. The dividend is covered 1.8 times by the profit. Shareholders’ funds rose $20,440 to $430,049, including steady fully-paid ordinary capital of $120,000. capital (reserves $2136 less at I $118,045, and revenue reserves $22,575 higher at $192,003. The earning rate on shareholders’ funds rose from 24.1 per cent to 27.3 per cent. Working capital fell $24,140 to $57,258, and the current ratio fell from 1.8 to L 4 to one.