Arthur Barnett Profit Is Peak

Press, Volume CIV, Issue 30841, 28 August 1965, Page 22

Arthur Barnett Profit Is Peak

(Neto Zealand Press Association) DUNEDIN, August 27. Arthur Barnett, Ltd., Dunedin department store, has lifted its profit this year by 41.7 per cent or £13,567 to a record £46,089.

As announced earlier the company is paying an unchanged dividend of 7} per cent plus a 1 per cent bonus dividend.

The sharp increase in net tax-paid profit for the year ended June 30 came after an increase in gross profit from £374,393 to £426,929. While general expenses, including wages, rose from £266,095 to £291,553, other charges against gross profit such as interest £10,535 (£10,670 in 1955) and depreciation £23,510 (£25,737) showed reductions. Before taxation profit was up from £63,590 to £92,837 and taxation increased from £31,068 to £46,748.

Total dividend requirement is £20,400 (£18,000), leaving £25,689 (£14,522) of the year’s profits to be retained. This brings the total of profits retained to £127,402 from last year’s £101,713. This has lifted total shareholders’ funds from £513,198 to £538,687, and is reflected in a rise in earning rate from 6.3 per cent to 8.5 per cent. During the year the issue of unsecured deposit notes to a total of £110,046 contributed substantially to the liquidation of the bank overdraft of £135,530. The company now has a credit balance of £11,666. Largely as a result of this reduction total current liabilities have been reduced from £281,447 to £177,076. Total bf current assets have risen from £518,071 to £544,160. This is after an increase in sundry debtors from £159,297 to £195,920, the appearance of a credit balance at the bank of £11,666, and a reduction in stock from £356.651 to £334,298. Total of fixed assets shown in the accounts is £430,789, compared with £438,443 a year ago. A note to the accounts says there is an anticipated capital expenditure of £31,298 presumably for the George street store’s new wing fronting Hanover street. This wing will enable the expansion of some present departments and the introduction of several new ones.