Company News F.T.C. YEAR

Press, Volume CII, Issue 30146, 1 June 1963, Page 16

Company News F.T.C. YEAR

Profit Up 39 Per Cent. (N.Z. Press Association) AUCKLAND, May 31

With total sales higher by more than £1 million at a new peak of £12,011.805 during the year ended March 31. the Farmers* Trading Company, Ltd., Auckland department store, achieved a record net profit for the seventh year in succession. The consolidated net profit of £431,474 was 39 per cent, higher than the result of £310,422 achieved during 1962, when earnings improved by 1.6 per cent. The earning rate on shareholders’ funds rose from 10.3 per cent, to 13.3 per cent. Gross trading profit increased by 28.7 per cent, to £1.018,347. As a result of the rise in sales, the chairman. Mr L W. Keals, said in his report that sales were particularly strong during the second half of the year, and this trend continued into the current trading period. Tax provision rose by £94,717 to £431,371 while depreciation absorbed £121.415 against £105.876 last year. As previously announced the company has recommended a dividend of 12J per cent, on ordinary ’ capital lifted from £951,622 to £1,442,433- by the one-for-two bonus issue. £180,304 Dividend

This required £ 180,304 against £144,239 last year when a 15 per cent, dividend was paid. Preference dividends again took £36,702. During the year the company also paid cash bonuses to holders of A and B preference shares, which involved the capitalisation of £40,074 in unappropriated profits, provision for which has been made in the latest accounts.

No transfers have been made to general reserve, which received £250,000 last year, or to capital reserve, which was credited with £16.449 in 1962.