DEANES EARNINGS RISE 10.1 p.c.

Press, Volume CVIII, Issue 31730, 13 July 1968, Page 18

DEANES EARNINGS RISE 10.1 p.c.

Deanes Industries, Ltd, the Christchurchbased clothing manufacturer, increased its profit by $8599, or 10.1 per cent, to $93,304 in the year to March 31, the annual accounts disclose.

This is after providing $1972 less for depreciation at $15,826 and $9843 more for tax at $91,563. As announced, the total dividend has been raised from 8 to 9 per cent The profit does not include any earnings from Greers Industries, Ltd, taken over on December 31, and J. J. McCaskey and Son, Ltd, acquired since the balance date. Dividend Requirement However, shares issued in these take-overs qualify for the final dividend of 4} per cent making the total ordinary dividend of $45,800 and the preference dividend $6OOO. The introduction of Greers into the group is reflected in the balance-sheet which shows shareholders’ funds $326,644 higher at $769,689, with ordinary capital up $45,485 to $495,485; redeemable preference capital appearing at $109,860 and the share premium reserve rising $27,742 to $31,262. Although Green balanced on March 31, its trading subsidiary, R. Greer and Son, Ltd, ended its financial year on December 31. Thus, no Income was earned from Greers in the three months to March 31. The full effect of the mer-

gers will be shown next year, says the chairman (Mr T. W. Perry). Deanes produced record sales for the first half of the financial year but this was followed by a declining pattern in later months, resulting from the Government’s economic measures, he says. It is difficult to predict the pattern of sales over the next 12 months.

The Deanes group has adequate manufacturing capacity to enable a substantially increased demand to be met with a minimal increase in fixed costs. Assets Sold

Some of the surplus assets brought into the group by the take-over of J. J. McCaskey have been sold profitably. Although the consolidated balance-sheet shows a generally satisfactory financial structure, directors consider that this can be further strengthened by some amendment of the group’s external borrowing policy, ay Mr Perry. The accounts show that fixed assets are $139,913 higher at $512,922 while term liabilities are $41,855 higher at $165,855.

Working capital improves $218,507 to $541,395 with current assets up $532,606 to $1,162,932 and current liabilities up $314,099 to $621,537. This gives a working capital ratio of 1.9 to 1.