T. And J. ’s Loss Due To Merchandising

Press, Volume CVIII, Issue 31780, 10 September 1968, Page 20

T. And J. ’s Loss Due To Merchandising

(Ndtp JJealaM Press Association) WELLINGTON, September 9. The heavy fall in total profit of Turnbull and Jone*, Ltd, Wellington electrical engineers, in the year to March 31, is attributable to merchandising activities, say the directors in their annual report.

They wy that the company's factories and manufacturing units all traded at a satisfactory profit during the year, but that sales of appliances and wiring materials fell by 11 per cent. The accounts confirm the preliminary figure of $48,000 net profit, previously announced, the audited amount

being $48,709, compared with $133,078 in the previous year. This is a fall of 63.4 per cent. This result is reached after providing $60,696 for depreciation (last year $62,732) and $45,024 ($123,278) for taxation. As already announced, ordinary dividend has been cut from 8 to 5 per eent, requiring $34,800 ($55,680) covered 1.4 times. The earning rate on shareholders’ funds fell from 9 to 6.6 per cent. In 1 their last report, the directors avowed their intention to raise $300,000 in convertible notes for the general purposes of the business, but in the light of subsequent economic conditions, they have decided not to proceed with the issue, their report says. They say that the fall in profit mostly reflects the general depression of the building industry, to which the group's main wholesaling operations are closely linked.