MALING PROFIT DOWN 9 p.c.

Press, Volume CII, Issue 30233, 11 September 1963, Page 19

MALING PROFIT DOWN 9 p.c.

Earning Rate Maintained

Maling and Company, Ltd., Christchurch wine and spirit merchants, made a consolidated net profit of £6665, a drop Of £664 or 9.1 per cent, in the year ended July 31, 1963, The figure was reached after provisions of £2114 (down £95) for depreciation and £5717 (down £581), for taxation.

It is the lowest profit reported by the company since 1956-57, when the profit was £5904. Last year profit rose £156 to £7329. Because of the reduction of preference capital, the earning rate on ordinary capital has been raised from 21.3 per cent to 21.6 per cent. As reported earlier, dividend on the unlisted ordinary shares has been increased from 11 per cent to 12| per cent. During the year half the 40,000 £l5 per cent preference shares were redeemed an’d the remainder converted to 5f per cent redeemable preference shares. The preference requirement was acordingly reduced from £2OOO to £1260 (including a special dividend of £.llO on preference shares repaid). The ordinary dividend takes £3125 and the carry-forward in the consolidated accounts is raised by £2280 to £14,730. Gross profit fell from £53,428 to £50.613 and expenses were reduced by £1649 to £32,689. The directors say that sales declined by 10 per cent but the reduction in expenses resulted in an increased margin of gross profit. In the consolidated balance sheet, current liabilities are shown at £21,531, an increase of £2536, and current assets have been reduced bv £20,454 to £88,207. Mortgage debt is £7OO lower at £20,300 and investments axe unchanged at £505.

Paid capital now comprises 20,000 5.i per cent preference shares (redeemable after October 1, 1965) and 50,000 10s ordinary shares. Capital reserves are steady at £29,574 and shareholders’ funds are £17,770 lower at £116,754. Fixed assets are £4520 higher at £69,873.