COMMERCIAL L.W.R. Sales Likely To Be Steady

Press, Volume CVIII, Issue 31781, 11 September 1968, Page 21

COMMERCIAL

L.W.R. Sales Likely To Be Steady

The level of forward bookings for the first half of the current year by Lane, Walker, Rudkin Industries, Ltd, the Christchurch-based textile group, is satisfactory in view of the difficulties facing the industry, the chairman (Mr N. 11. Rudkin) says in the annual report.

>ays in inc annual i cpui i. Directors feel that the sales position is likely to be maintained for the current year as long as there is no further downturn in the economy, he says.

As announced, the group; profit for the year to June 19;; rose $30,605. or 4.7 per cent. 11 to $679,065 after allowing for the SIO.OOO preference divi-i <

dend to outside shareholders The steady 12 J per cent dividend again requires 5290.000 and is covered 2.3 times. Earning Rates

The earning rate on average shareholders’ funds is down from 13.5 to 13.0 per cent while the rate on capital is up from 27.9 to 29.2 per cent.

; Group sales exceeded sl3m and were within 1.9 per cent ; of sales for the previous year A reduction in turnover was expected and had been coun

teracted by efforts to control costs.

Demand Growing

Dominion Yarns and Fab rics, jointly owned with John Heathcoat and Company, Ltd, the English textile group, con tinued to operate profitably throughout the year. The de mand for its production oi

Helanca yarn has shown a ris ing tendency. The latest profit is after pro viding $17,838 more for depreciation at $341,046 and $31,581 more for tax at $650,017. Shareholders’ funds arc $390,695 higher at $5,398,065 Capital, all ordinary, is steadv at $2,320,000. The rise in funds is accounted for by an increase in working capital of $262,070 to $2,691,182, a rise in fixed assets of $106,475 to $3,546,453 and a decrease of $22,150 to $639,570 in term liabilities. Liquidity Improves Current assets are $113,265 higher at $4,275,393 while current liabilities are $148,805 lower at $1,584,211. The liquidity ratio improves to 3.5 to 1. Major movements in cur- ; rent items are an improvement I of $364,596 to $343,968 in cash ; in bank (last year there was an overdraft of $20,628); a fall of $276,993 in inventories to $2,275,837; and a fall of $160,031 to $763,451 in creditors.

Total expenditure on fixed assets last year was $449,300.