Company News HAY’S RECORD YEAR

Press, Volume XCVIII, Issue 29010, 26 September 1959, Page 16

Company News HAY’S RECORD YEAR

High er Dividend Well Covered

Net consolidated profit of Hay’s, Ltd., department store proprietor, Christchurch, rose £5552 to a record £57,715 in the year ended July 31. This result is reached after providing £2920 less for depreciation at £33,767 and £4OlO more for taxation at £60,000. Group turnover rose £41,000 to £2.156,000 and the group’s trading profit rose £6184 to £159,968. Preference dividends paid to outside shareholders in subsidiaries are steady at £1337, and leaving £56.378 available to stockholders in Hay’s.

Ordinary dividend, as announced earlier, has been raised to 11 per cent, by the addition of a’ l per cent, bonus. The ordinary dividend is payable for five months on the £25,000 new capital. Total payment on ordinary stock is £25,896 and the 5 per cent, preference dividend takes £7500. Transfer to general reserve has been raised from £lO.OOO to £30,000. These appropriations exceed net profit by £7OlB and carry-forward is reduced to £50.014. Balance Sheet Changes The biggest change in the consolidated balance sheet is a reduction of £130.762 in bank overdrafts. In the parent company’s accounts an overdraft of £125,010 has been replaced by a credit balance of £8675. The consolidated balance sheet shows overdrafts totalling £31,214. compared with £161,976 last year.

Accounts payable are £17,572 higher at £199,939, tax provision rose £3079 to £59,062, and provision for dividends is £3440 higher at £30.314. The total of current liabilities is £106.671 down at £320,529. Current assets fell from £759,042 to £696,335. Customers’ accounts rose £14,964 to £324,989 but stocks fell £77,671 —from £447,185 to £369,514. Fixed assets rose £14,147 to £368,041. Land and buildings are £19,665 higher at £247,302. Explaining the drop in this year’s depreciation provision, the chairman (Mr J. L. Hay) says that special depreciation allowances on building erected some years ago havi now been eliminated. Mortgages at £133,383 show a drop of £8621.

Paid capital rose £25,000 to £400.000 through the issue of 50.000 ordinary 10s stock units during the year. The premium of 7s 6d a share on this issue totals £18,750. This has been credited to the share premium account, bringing it to £30.750. General ~eserve, with this year’s addition, stands at £lOO.OOO. Outside shareholders’ interests in subsidiaries (in 4J per cent, preference shares) remain at £29,700. Stockholders' funds rose £66,732 to £580.764. Net working capital is £375,806 (up £43,964) and total net assets are £743,847 (up £58,111).