COMMERCIAL A. And T. Burt Has Good Result

Press, Volume CVII, Issue 31448, 15 August 1967, Page 18

COMMERCIAL A. And T. Burt Has Good Result

The group net profit of A. and.T. Burt, Ltd., Dunedinbased plumbing, heating and ventilation engineers, increased $24,322—0r 4.8 per cent—to $534,662 in the year to April 30.

This is a gratifying result, because of the adverse conditions throughout New Zealand, particularly in the building industry, in which the firm is a substantial unit, the chairman (Mr L. R. Burt) says in the annual report.

However, it is significant that the profit has been helped considerably by the inclusion of the sales and profit of the latest acquisition. Geo. McCaul Ltd., of Auckland, he says.

Consolidated sales were higher than last year, but gross profit did not increase proportionately; expenses, although closely scrutinised, increased more in proportion to sales. It is these factors, as well

as a marked decline in profitability in contracting in the Auckland area which are responsible for the small increase, Mr Burt says. The profit was reached after providing (30396 more for depreciation at'(131,654 and (15,818 more for tax at (534.662. Good Cover The steady dividend of 10j per cent takes again (210,000, and the preference pay-out Is $6OOO. The ordinary dividend is covered 2.5 times by the profit General reserve receives $300,000 and stands now at $1,700,000. The earning rate on average shareholders’ funds declined from 10.9 to 10.6 per cent the rate on capital increased from 25.2 to 27.4 per cent

The slight decrease in over-the-counter sales, evident in the last five months, added to the further restrictions on imports and the conditions In the building industry, preclude optimism about the coming year, says Mr Burt