COMMERCIAL Early Bros Again Had Good Year

Press, Volume CVIII, Issue 31658, 19 April 1968, Page 17

COMMERCIAL Early Bros Again Had Good Year

In spite of difficult trading conditions during the year all companies of the Early Bros Dental and Surgical Supplies, Ltd, group, Christchurch, again traded profitably, says the chairman (Mr I. J. Wilson) in the annual accounts.

The manufacturing subsidiary, Ethicals, Ltd, Auckland, achieved a very good increase in turnover and profits.

This unit is expanding rapidly and negotiations for an association between Ethicals and a leading overseas company to further this expansion are still in train, he says. A satisfactory conclusion Is expected soon. Profit Rise As announced, the group profit rose 41.6 per cent, or $19,933, to $67,737 in the year to December 3L Because of the take-over of Oral Supplies since the previous year, the steady 12} per

cent dividend requires $12,331 more at $35,547. This is covered 1.9 times by the profit The earning rate on average ordinary shareholders' funds is Up from 12.5 to 13.0 per cent but the profit is insufficient to maintain the rate on average ordinary capital which slips from 25.4 to 23.6 per cent Oral Supplies The merger of interests with Oral Supplies has proceeded very satisfactorily and has led to a considerable strengthening of group activities, says Mr Wilson. This company continues to trade as a separate entity and recorded a very satisfactory year’s trading result. The latest profit is after providing $B2OB. more for depreciation at $22,070 and $27,906 more for tax at $73,592. Shareholders’ Funds Shareholders' funds are $246,281 higher at $648,405, with ordinary capital up $82,500 to $284,378. As well, there is steady preference capital of $BOOO. Capital reserves are $132,001 higher at $205,355 by the increase in share premium reserve to $194,299 from the purchase of shares in Oral Supplies.

Term liabilities are down $lOOO to $30,800 while fixed assets are $31,157 higher at $213,565. The premium arising on consolidation is up $94,020 to $132,552. Working Capital Working capital improves $129,104 to $333,088, and the ratio is 2.2:1. Current assets are $149,387 higher at $599,273, with stocks $94,277 higher at $375,153. Current liabilities are $29,283 higher at $266,185 with bank overdraft $58,548 lower at $39,406.