Berlei Record Sales Offset By High Costs

Press, Volume CVI, Issue 31321, 17 March 1967, Page 16

Berlei Record Sales Offset By High Costs

(New Zealand Press Association) AUCKLAND, March 16. Sales of Berlei Industries, Ltd., Auckland, increased to record levels, but higher costs for raw materials, wages and overheads offset the improvement and were responsible for the fall in consolidated net profit, says the chairman (Mr R. King) in the report for the year to December 19.

Although the company held selling prices during 1966, costs had been reviewed and a new price list would take effect at the end of the month, he says.

As announced, the net profit dropped £9734, or 15.3 per cent to £53,973. Referring to two recent acquisitions, Mr King says

they provided avenues of profitable expansion and diversification. Toward the end of 1966 the company acquired Peggy Clark, Ltd., lingerie and nightwear manufacturer, while early in the current year it acquired Klippel Bros. (N.Z.) Ltd., manufacturer of men’s coats and accessories. The year’s profit was after providing £722 less for depreciation, at £26,705, and £7280 less for taxation, at £52,520. The steady 10 per cent dividend would take £41,000. The earning rate on aver-

age funds fell from 8.4 per cent to 6.9 per cent and on capital from 15.5 per cent to 13.2 per cent. Shareholders’ funds, including steady capital of £410,000 increased from £771.224 to £789,892. Term liabilities were reduced by £20,034 to £398,375. Fixed assets were £6503 lower at £353,526. while investments increased from £14.627 to £34,386. Working capital improved £13,829 to £386,417. Stocks were £23.049 lower at £521,444. Overdraft was down by £35,462 to £216,989. A reduction of £9750 in intangibles to £25,250 reflected the directors’ policy of progressively reducing goodwill on consolidation by transfers from the general reserve.