W. And T. Profit Rises £33,343

Press, Volume CIII, Issue 30602, 19 November 1964, Page 21

W. And T. Profit Rises £33,343

Consolidated net profit of Whitcombe and Tonibs, Ltd., Christchurch-based printers, stationers and booksellers, was £172,511 —a rise of £33,343—in the year to August 31.

This result is after depreciation of £131,106, £14,974 higher, and £15,555 more for tax at £161,774. It was also after allowing £13,735 more for a pension fund contribution of £36,035. Dividend, steady at 11 per cent, takes £85,607. Tax overprovision of £3898 brought in takes consolidated carry-for-ward to £166,283. General reserve has been lifted by £89,125 taking it to £839,125. From this reserve the proposed one-for-two bonus issue, needing £389,125, will be made.

During the year capital was raised by £20,000 to £778,250. Capital reserves are up from £478,426 to £539,324, taking in a £42,000 premium on 40,000 10s shares issue as part purchase of a new subsidiary. Plant replacement reserve is steady at £300,000 and

shareholders’ funds are up from £2,451,062 to £2,623,402. Long-term liabilities are up from £684,177 to £744,368. Current liabilities are up from £815,324 to £936,690, with overdraft £87,878 higher at £242,391 and sundry creditors £18,994 higher at £470,096. Current assets are up from £1,696,309 to £1,972,238 with stocks £178,972 higher at £1,398,034 and debtors £86,769 higher at £556,880.

Investments are down from £78,832 to £60,660 and fixed assets are up from £2,131,360 to £2,232,968. Capital commitments at balance date stood at £120,000.

Shareholders will be asked at the annual meeting on December 4 to approve the bonus issue and an increase in authorised capital from £lm to £2m for possible future capital expansion. The chairman (Mr L. D. Cotterill) says in his report that all sections of the business showed an increase in turn-over in spite of licensing restrictions and indications that television is beginning to affect some sections of book selling. Directors see no reason at present why the amount recommended for this year’s dividend distribution should not be maintained after the bonus issue.

“This would provide a dividend of 7 1/3 per cent on the issued capital after taking into account the new proposed bonus isue, but shareholders would appreciate that future dividend policy must be dependent upon earnings from year to year,” he adds.