MILNE AND CHOYCE

Press, Volume CVI, Issue 31196, 21 October 1966, Page 14

MILNE AND CHOYCE

Sales Up But Profit Falls (N.Z. Press Association! AUCKLAND, Oct. 20. An unexpected reduction in the rate of gross profit of the parent company of Milne and Choyce, Auckland retailer, and an increase of £66,055 in overheads results in the 5.4 per cent fall in profit in the latest year, says the chairman (Mr R. S. Milne) in his annual report. Total sales rose 7.4 per cent, or £301,141, to £4,400,816. The rise in overhead costs was almost entirely because the Remuera store operated for a full year against two months the previous year, Mr Milne says. Sales at the suburban stores again exceeded the previous year’s. Both manufacturing subsidiaries, Garnet Furnishings, Ltd., and Maida Vale Clothing Company, earned satisfactory profits. Net profit declined by £3427 to £59,475 —after depreciation £2615 lower at £77,758 and tax £6338 down at £59,447. Earning rate on shareholders’ funds, down £2OB to £1,313,937, declined from 4.8 per cent to 4.5 per cent. As reported before, dividend is steady at 6 2/3 per cent and requires £60,000, £525 more than the year’s profit. As well as the trading result, a profit of £220 was realised on the sale of Government stock. > Milne and Choyce will concentrate its efforts in the Auckland area, says Mr Milne. Directors believe this will be in the best interests of the company. Assets of the Palmerston North store have been sold to D.I.C. Ltd., and the transfer became effective on October 3.

Broadlands Interim Up (N.Z. Press Association) AUCKLAND, Oct. 20. The Broadlands Investment Group, Auckland financier, has increased its interim dividend from 5 to 51 per cent after a higher profit in the six months to September 30. Turn-over and earning rate also rose, directors say. Halfyearly accounts will be released soon. Last year Broadlands paid 10 per cent for the year. The latest dividend is the fifth successive rise since the first dividend of 6 per cent in 1962. It is payable November 30; ex November 23.