Kirkcaldie Dividend Raised To 25 p.c.

Press, Volume CVIII, Issue 31597, 7 February 1968, Page 16

Kirkcaldie Dividend Raised To 25 p.c.

(New Zealand Press Association) WELLINGTON, February 6.

Kirkcaldie and Stains, Ltd, Wellington retailer, is increasing its dividend from 20 to 25 per cent, though profit for the latest year was slightly down and the chairman, Mr C. S. Hogg, predicts more difficult times ahead.

“I would be less than realistic if I did not tell you that the state of the country’s

economy is such that a marked downward trend in profitability in all sectors of commercial and industrial activity is inevitable,” says Mr Hogg, in a report to be made to shareholders at the annual meeting on March 6. “Your company is well equipped to meet the rapidly

changing conditions we now face, but it would seem impossible for it to escape unscathed from the pressure brought about either by Government measures or by the drastic fall in the Dominion’s export income,” he says. Profit for the year to August 31, was $130,776, against $134,590 in 1966 and $111,972 in 1965. The latest profit represents

a fail of $3,814 —or 2.8 per cent—on the year. It exceeds the profit for any

previous year, except 1966, by a considerable margin. The earning rate on capital is 44.7 per cent (45.9 per cent last year). Higher Provisions The result is reached after providing $33,957 ($31,032) for depreciation and $149,841 ($159,818) for tax.

Provision f or doubtful debts has been increased by $lB,OOO to $56,780, representing 17 per cent of trade debtors at $326,914. The chairman says this should be more than adequate. Dividend, which was raised from 15 per cent in 1965 to 20 per cent in 1966 ’s increased again—to 25 per cent. It takes $73,253 ($58,602) and is covered 1.8 times.