COMMERCIAL Costs Rise Affects Burke’s Caterers

Press, Volume CVIII, Issue 31724, 6 July 1968, Page 19

COMMERCIAL Costs Rise Affects Burke’s Caterers

In spite of a higher gross profit, an increase in operating expenses reduced the group profit of Burke’s Caterers, Ltd, the Christchurch caterer and hotel owner, by $837, or 1.7 per cent, to $49,097 in the year to March 31.

As announced, the dividend has been maintained at 9 per cent but requires $5625 more at $28,125 because of the premium issue during the year. This amount is covered 1.8 times by the profit.

decline in intangible assets with good will amounting to $13,168 being written off. Use Of Funds These funds were used to increase fixed assets by $90,391 to $643,555, investments and advances by $27,562 to $56,798 and reduce the deficit in working capital by $10,508 to $66,670. Current liabilities fell $16,078 to $196,256 while current assets fell $5570 to $129,586. Bank overdraft rose $21,108 to $39,116.

The earning rate on average shareholders’ funds is down from 12.2 to 10.8 per cent while the rate on average ordinary capital is down from 19.9 to 15.7 per cent Operating expenses rose $27,949 to $218,617. The provision for depreciation rose $4513 to $24,377 while that for tax is up $1242 to $47,488. Catering Pattern The pattern of falling turnover at racing and trotting meetings has become more

pronounced and has affected results lor the second half of the year, says the chairman (Mr A. R. Guthrey).

Other catering activities have been maintained at levels comparable with those at previous years. Trading results from the Bush Inn have again been very good. Sketch plans have been prepared for a new lounge bar and six double motel units on the Upper Riccarton property. When permission has been grafted for zoning approval, th s development will go ahead. Winter Garden The turnover of the Winter Garden rose 7| per cent in the latest year. Customer resistance to the increase in bread prices arising from the removal of subsidies has affected the year’s trading in the home bakery. The butchery division declined in profitability, especially in the second half of the financial year. Shareholders’ funds rose $87,293 to $499,683 in the latest year with ordinary capital rising $62,500 to $312,500 and the premium on shares reserve appearing at $18,750 from the share issue. The other source of funds was an increase in mortgages by $28,000 to $134,000 and a