PROFIT FALL BY TEKAU

Press, Volume CII, Issue 30234, 12 September 1963, Page 19

PROFIT FALL BY TEKAU

Recovery Is Expected Tekau Knitwear, Ltd., Timaru, recorded a £14,920 drop to conso-lidarted net profit of £33,548 in the year to May 19, although there had been a record result for the first six months but directors expect ol substantial recovery in the current year. Commenting on the lower orofit, the chairman, Mr F. H. Mclntosh, says in his report that sales resistance in the second six months was more marked and widespread than expected. This was brought about because of lack of public demand in the previous winter. Retailers were holding considerable stocks from their previous purchases and therefore placed only supplementary orders. Forward Bookings Mr Mclntosh says forward knitwear bookings for the spring show an increase of 14 per cent over last year. Winter orders are also expected to 'be greatly in excess of those for 1963, The latest profit was reached after providing £16,561 less for tax at £31,376. and £517 less for depreciation at £36,005. Gross manufacturing profit before depreciation was £26,240 lower at £184.821, and expenses totalled £84,660, an increase of £5798. Ordinary dividend steady at 9 per cent., again takes £27,000, and the 5 per cent preference charge absorbs £2500. The carry - forward is £30,587, against £36,539 brought in. Fire Fighting Loss. Fire Fighting Equipment, Ltd., Sydney fire protection engineer with New Zealand connexions, . will not pay 'a dividend after incurring a loss of £39,882 in the year to June 30. In the previous year, profits had slumped by £62,306 to £26,919, and failed to cover the 10 per cent, dividend by £32,362.

Bartholomew Timber.—Bartholomew Timbers. Ltd.. Hamilton. sawmillers and timber merchants, recommended final dividend is 4 per cent, making 1\ per cent for the year. Total dividend last year was 7 per cent. Ex dividend date is October 9.—(P.A.)