Seabrook Fowlds Had Difficult Year

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

Seabrook Fowlds Had Difficult Year

(New Zealand Press Association) AUCKLAND, July 5. Turnover and profits were reflecting the supply of new vehicles, although the used-car market was more stable and the prospects from parts servicing and aircraft trading looked bright, the chairman of Seabrook Fowlds, Ltd, Auckland Austin distributor (Mr J. Seabrook), says in his annual report.

The year was a very difficult one, profit falling by 25.9 per cent, which was satisfactory in view of the severe restrictions directly aimed at the motor industry. The second 20 per eent cut in car import licences was reflected in fewer new cars,

and there was a heavy fall in demand for unlicensed heavy commercial vehicles. The over-all trading in used cars showed a profit, but this was lower than the previous year. The income from financing hire-purchase sales was also reduced. Directors were cautious in making any forecast, but hoped to improve last year’s result The easing of hire-purchase restrictions would help the company considerably, and already retail sales of motorvehicles had shown improvement In the difficult times, special attention was given to liquidity and this ratio had been increased with reduced debtors, stocks and bank overdrafts. The fall in prices of used cars was such that expensive methods of clearing stock had to be adopted. As announced, the net profit fell by 25.9 per cent, or $58,055, to $165,763, after providing $2765 more for depreciation at $68,017 and $61,000 less for tax at $139,000. The earning rate on average funds fell from 9.3 per cent to 6.5 per cent, and on ordinary capital from 14.1 per cent, to 10.5 per cent The dividend of 8 per cent took $126,884, covered 1.3 times.