HY. BERRY PROFIT

Press, Volume CIV, Issue 30823, 7 August 1965, Page 24

HY. BERRY PROFIT

Group Earns Less (N.Z. Press Association) WELLINGTON, August 6. Henry Berry, Wellington merchants and distributors, had a- 15.8 per cent drop in group net profit in the year ended March 31 last. The full accounts show the latest net result to be £36,616 compared with £43,496 in the previous year. The profit drop was incurred in spite of a record sales turnover of £2.515,130 by the parent company. Increases in running costs, in particular that resulting from the General Wage Order, were responsible for the reduced profit figures. The chairman (Mr F. H. Bass) says in his review that the wage increase not only affected the wages and salaries of the company hut was also reflected in other costs. “In a competitive type of business such as ours it is not easy to recoup immediately, by increased prices, the added .costs resulting from the General Wage Order,” he says. An increase in depreciation (up £8690 to £30.979) and also in provision for bad anq doubtful debts (£l5OO higher at £16.500) also contributed to the lower net result. Earning Rates Earning rates show a slip. That on average ordinary shareholders’ funds is down f’- i 7.9 to 5.3 per cent, and that to ordinary capital drops from 23.2 to 12.4 per cent. Taxation provision is £5660 lower at £37.474. Gross trading profit is 14.8 per cent higher at £472,562 but general expenses rose by 21.9 per cent to £358,208. Steady 10 per cent ordinary and 5 per cent preference dividends take £26.044 (last y-ar £22,031) and £5OOO (£19,000) is transferred to reserves, leaving £53,118 (£47,545) to be carried forward