Company News HAY’S PROFIT UP 21 P.C.

Press, Volume XCIX, Issue 29336, 15 October 1960, Page 11

Company News HAY’S PROFIT UP 21 P.C.

Higher Dividend. Well Covered

Net consolidated profit of Hay’s. Ltd., department store retailers, Christchurch, rose £12,349, or 21.4 tier cent, to a record £70,064 in the year ended July 31, 1960. The previous year profit rose £5552.

Hie latest result is reached after provision of £39,802 (up' £6035) for depreciation and £75,725 (up £15,725) tor taxation. It represents an earning rate of 10.8 per cent on , average stockholders’ funds, compared with 10.5 per cent on last year’s lower figure. Preference dividends paid to outside shareholders in subsidiaries total an unchanged £1337, leaving £68,727 available to'Hay’s stockholders. Ordinary dividend, as announced earlier, has been raised from 11 per cent, to 12 J per cent This requires £34,297 (up £8401) and 5 per cent preference requirement is again £7500. Transfer to general reserve is reduced from £30,000 to £25,000. Goodwill written off, a new item, is £7500 bringing total appropriations to £74,297. Brought into the accounts is an adjustment for Brown Ewing’s loss before acquisition by Hay’s amounting to £6224. Carry-forward is slightly higher at £50,668. New Records The chairman (Mr J. L. Hay) reports that new records in turnover and profit were achieved. “The group turnover, including the Dunedin branch acquired during the year, was £2,909,500, an increase of £753,500, or 35 per cent, over last year’s record figures.

“If the Dunedin sales are excluded the increase in turnover for the remainder of the group is £281,000, or UJ per cent.” Paid capital (of which £150,000 is preference) rose £42,500 to £432,500. The share premium account rose £65,133 to £95,883. Most of this increase resulted from the premium of Hay's shares issued as consideration for the capital of Brown Ewing. With this year’s addition revenue reserves total £175,668 and stockholders’ funds are £133,287 higher at £714,051. Outside shareholders’ interests in subsidiaries (in 4J per cent, preference shares) are steady at £29,700. Unsecured Notes Term liabilities comprise mortgages (lip £91,372 at '£224,755) and £62,500 —a mew item—in unsecured convertible notes paid to 10s. Current assets rose £371,098 to £1,067,433. Under this heading customers’ accounts rose from £324,989 to £494,116. Current liabilities are £291,803 higher at £612,332. Bank overdrafts are up from £31,214 to £228.307. Net wording capital is £79,295 higher at £455,101. Fixed assets rose £207.864 to £575,905.