COMMERCIAL Ashby Bergh Sales Up, Profit Down

Press, Volume CVII, Issue 31522, 9 November 1967, Page 18

COMMERCIAL Ashby Bergh Sales Up, Profit Down

In spite of non-recurring items in the latest year to July 31, the profit of Ashby Bergh and Company, Ltd, the Christchurch builders’ supplier and hardware retailer, fell only $8448, or 11.2 per cent, to $66,794.

For the third successive year, the Christchurch sales and the total gross profits were a record, says the chairman (Mr C. W. Evans) in the directors’ report.

re-arrangement of mortgages has established a sound basis of fixed finance, says Mr Evans.

As announced, the total dividend, which includes a 21 per cent bonus, is steady at 15 per cent and again requires $42,000. This is covered 1.6 times by profit. The latest profit has absorbed much of the nonrecurring expenses involved in the change from Cashel

Street to the new building in Manchester and Madras Streets and the closing of the Greymouth branch, says Mr Evans. Largely because of the new building, the provision for depreciation is $19,566 higher at $37,284. The provision for tax is $8416 lower at $64,806. The earning rate on average shareholders’ funds is down from 6.8 to 5.8 per cent while the rate for capital is down from 26.9 to 23.8 per cent. Shareholders’ funds are $24,794 higher at $1,162,960 and include capital, all ordinary, steady at $280,000. Balance-sheet The new building and its furnishings are reflected in the changes to items ,in the balance-sheet. Fixed assets are $186,808 higher at $847,424. Term liabilities are $BO,OOO higher at $306,000. A

Working capital Is $82,014 lower at $621,286 to give a ratio of 1.8:1. Current assets, which the previous year were swelled by an amount of $117,000 owing on the sale of the Cashel Street property, are $88,120 lower at $1,357,808. Current liabilities are $6106 lower at $736,522. Shareholders will be asked at the annual meeting to approve splitting the present $2 shares into $1 units.