K.P. Drug Profit Down 22.7 p.c.

Press, Volume CIV, Issue 30822, 6 August 1965, Page 15

K.P. Drug Profit Down 22.7 p.c.

(New Zealand Press Assoeiaeion)

DUNEDIN, August 5. Tax-paid profit of Kempthome Prosser and Company’s N.Z. Drug Company, Ltd., was down this year by just more than 22.2 per cent or £66,266 to £225,322 —the lowest for five years.

From the profits the directors have recommended an unchanged dividend of 10 per cent, requiring £150,670. For the year to the end of May, total gross profit fell from £671,804 to £542,426. This included a reduction in investment income from £26,299 to £22,485. After depreciation of £110,687 (£107,188 in 1964), profit before tax was £427,239 (£560,146) and on this lower profit provision for taxation was down from £268,528 to £225,322. Transfer to Reserve After the payment of dividends £75,000 has been transferred to the general re-

serve (now standing at £1,020,211) while total profits retained are fractionally less at £104,315 (£104,663). Total shareholders’ funds have increased by almost the amount of the £75,000 transfer to £3,313,796. However, lower profits have reduced the earning rate from 9 per cent to 6.8 per cent.

Total current liabilities have risen from £1,280,958 to £1,683,938. These include borrowing from the bank of £724,271 compared with £273,081 previously and sundry creditors of £610.135 (£593,668). Current assets, represented by stock at £1,682,461 (£1,504,573) and sundry