COUNTER TO RUMOURS

Press, Volume CII, Issue 30028, 12 January 1963, Page 14

COUNTER TO RUMOURS

Statonent By Cox Bros. (NX Pr«s» A3M.—CoppripM) MELBOURNE, Jan. 11. The direeton of Cox Brothen (AwCralia)., Ltd., and Cox Finance Corporation, Ltd, today made the following Joan* announcement: — “It i> not customary for either company to make any announcement about trading results except after the interim stocktaking on January 3, and the final stocktaking on July 31 of each year. “In what it beUeves to be the best interests of its shareholders and investors, the board departs from this weUestabiished practice only to deny certain rumours about sales figures and the finances of the group.” The board stated that the Cox Brothers group bad never departed from its established role as a retailer. Retail sales for the group for December, 1962, and for the five months ended December, 1962, were ahead of last year. It was expected the retail sales for the six months to January 31, 1963, would also be ahead of last year. The group was trading profitably and wifthin its resources.

Prompt Payment The boards’ statement continued: “The group pays promptly for all goods. For the 12 months to July 31, 1962, some £24m worth of goods was bought (about £2m a month) and on July 31, 1962, as per audited balance sheet, only £446,000 was owed, or about five days average supply. The group

was then and still is on maximum discount terms.

“Cheques to debenture holders and depositors for interest due on January 31, 1963, in both companies, will be paid on the due date. Both companies have repaid every matured debenture or deposit note upon its due date except when renewed ait the request of the holder.

“The current debenture issue of Cox Finance Corporation, Ltd, for £750,000 71 per cent. Debentures underwritten by Messrs lan Potter and Company, has been subscribed.

“The company, in terms of the prospectus, is prepared to accept subscriptions for another £750,000. The group will make the normal half yearly statement about sales and interim dividends on or about March 7, which is the usual date,” the statement added.