DIVIDEND OF 6 PER CENT.

Sun (Auckland), Volume II, Issue 344, 3 May 1928, Page 12

DIVIDEND OF 6 PER CENT.

Keen competition on low-price levels is given in the annual report of the New Zealand Farmers’ Fertiliser Co., Ltd., as the reason for lower net profits for the financial year just closed. Net profits are shown at £17,626, compared with £25,187 for the 1926-27 season, and £27,156 for the 1925-26 season. The result of the year’s trading is considered much better than was first expected, and was largely due to a very marked increase in output, with consequent reduced overhead costs. Owing to the reduced returns, the directors consider it advisable to recommend that the dividend rate be reduced to 6 per cent. This will absorb £15,719 14s. With the return of higher prices, continues the report, it is reasonable to assume that better retults will be obtained in the future. The demand for the company’s products over the past season were of such an exceptionally heavy nature that deliveries from the New Plymouth works in particular were very much in arrears, and, in order to afford a more efficient service, it became essential that extensive additions be made to the plant. This work was put under way without delay and completed during the financial year. The usual depreciation has been written off the buildings, plant and machinery at the Auckland and New Plymouth works, where the efficiency of both plants was fully maintained. The balance sheet shows capital paid up £261,995, the reserve account stands at £17,647, the same as last year, while liabilitv to bankers has decreased from £181,221 to £168,502. Assets total £522,686, a decrease of £16,852. Land, buildings, machinery and plant, less depreciation, stand at £411,551, a reduction of £12,827. Stock at £42,681 shows a decrease of £22,143, while sundry debtors, £55,385, is higher by £18,120. Rights and concessions remain at £13,000. The company has been in existence for 12 years, five of which passed before it reached the manufacturing stage. For the last seven years gross profits have been successively: £24,753, £65,682, £81,575, £84,811, £93,368, £SB,OOO and £79,458. A net loss of £15,916 was shown for 1921-22 and of £7,247 in £1922-23, followed by net profits of £24,105 in 1923-24 and of £25,724 in 1924-25. Following is a summary of the company’s results and appropriations for the last three years:— 1925-26. 1926-27. 1927-28 Brought forward £7,193 £7,699 £13,236 Net profit. . . £27,156 £25,187 £17,626 £34,349 £32,886 £30,862 Rights and Concessions . £7,000 Dividend — Rate, p.c. . . 7J 6 Amount . . . £19,650 £19,650 £15,720 Carried forward £7,699 £13,236 £15,142 The company’s £5 shares were sought on ’Change this morning at 90s, the highest figure for many months.