Decimal Change-over Lifts Beechey Profit

Press, Volume CVIII, Issue 31680, 16 May 1968, Page 18

Decimal Change-over Lifts Beechey Profit

(New Zealand Press Association) AUCKLAND, May 15. After a sharp rise in profit of Beechey and Underwood, Ltd, Auckland office equipment distributor, as a result of decimal currency equipment deliveries in the year to December 31, the directors see in the relaxation of import control a means to offset a possible fall in sales of some lines.

The chairman (Mr R. D. Cox) says this in the annual report.

Including the results of two newly-acquired subsidiaries in Gisborne and Dunedin, the first consolidated accounts show a net profit $24,593, or 78.3 per cent, higher than the

1966 parent company result to a record $55,989.

The parent company's profit increased 32.1 per cent to $41,486. The cost of securing forward orders for decimal currency equipment delivered in 1967, incurred in previous years, has been fully written off in the latest accounts. Bonus Dividend A special bonus dividend of 2 per cent has been added to the steady 8 per cent dividend, the total requirement oeing 83L850 besides the $lOOO preference charge. Mr Cox says that in the past import control had more than any other factor mitigated against healthy growth of the company. The board, therefore, welcomed the freeing of most of the equipment handled. The net result was struck after providing $24,539 for depreciation and $54,058 for tax.

The earning rate on average ordinary shareholders’

, funds jumped from 7.9 to 13.4 per cent and on average or- ' dinary capital from 9.9 to 17.3 i per cent. Shareholders’ funds were 8445,717—an increase of $30,499 on the 1966 parent company figure. They included preference capital of $20,000 and ordinary capital increased by $lO,OOO to $321,000.