COMMERCIAL Norvic Profit Rise Of 67.5%

Press, Volume CVI, Issue 31335, 4 April 1967, Page 21

COMMERCIAL Norvic Profit Rise Of 67.5%

In a year of steady progress, Norvic Footwear, Ltd., Christchurch, shoe manufacturer, increased its profit by 67.5 per cent, or £11,596, to £28,742 in the year to January 19.

As announced, total dividend is raised from 9 to 10 per cent and bn capital raised by a premium issue, requires £3500 more at £12,500. This is covered 2.3 times.

Although conditions in the shoe trade have been keenly competitive, Norvic’s growth continued in both manufacturing and sales, says the chairman (Mr T. W. Perry). Production from the injection moulding plant has shown a very substantial increase and shoes made by this process are finding a ready market.

Infant Footwear Norvic began manufacturing infant’s shoes and sandals towards the end of the financial year and the company expects to be in volume production on these in the current year, he says. Earning rate on average shareholders’ funds is up from 10.4 to 14.5 per cent while the rate on capital is up from 17.1 to 23 per cent. The profit includes £5368 as a proportion of profits accruing on consolidation from the subsidiary, Regent Footwear, Ltd. It also includes a 9 per cent dividend from Suckling Bros., in which Norvic owns 28,000 20s shares. Regent Holding Norvic owns 62} per cent of the capital of Regent Footwear, and Sucklings 37} per cent. No dividends were received from Regent Footwear and Injection Moulders, Ltd.— both of which are trading satisfactorily and earning profits—because of the need for

retention of profits for development, says Mr Perry. The profit is after providing £7182 more for depreciation at £16,571 and £11,102 more for tax at £27,491. Shareholders’ funds are £56,980 higher at £227,833, mainly because of the £25,000 increase in capital to £125,000 and a rise of £15,625 in the share premium reserve.

Current assets are £20,345 higher at £297,043 with debtors £16,880 higher at £119,758, share investments £4685 higher at £47,185 and stocks £4220 lower at £127,100. Current liabilities are £8975 higher at £112,226 with overdraft down £7466 to £11,451, trade accounts and accruals down £3BBO to £41,660 and a new item of a loan from an associated company of £9375. Fixed assets are £67,234 higher at £187,788.