J.Duthie Turnover Down, Profit Up

Press, Volume CVIII, Issue 31830, 7 November 1968, Page 15

J.Duthie Turnover Down, Profit Up

(N.Z. Preu Auociotionl WELLINGTON, Nov. 6. The annual report of John Duthle Holdings, Ltd, Wellington hardware group, for the year to September 30 reveal* that the 9.6 per cent increase in net profit was achieved notwithstanding a 6 per cent fall in turnover.

The chairman of directors (Mr E. V. R. Wyllie) wrote that the fall in turnover was more than offset by an increase in rate of gross profit, so that total earnings from trading rose sll,4ol—or 2.5 per cent—to $460,858. The company was considerably affected by changes in the fortunes of the building industry, with which it is closely allied, and other sections of the business also felt

the impact of Government curbs on spending. “A further reduction in expenses was achieved, but it is unlikely that any further progress can be made in this direction,” said Mr Wyllie. “The general wage order, devaluation and a consequent rise in costs will, it is anticipated, force our expenses higher in the current year.”

The company’s import licences for the year just concluded were cut by 22} per cent The earning rate on capital was 10.33 per cent (9.42 per cent) and on shareholders’ funds 4.90 per cent (4.53 per cent).

The 7 per cent (last year 6} per cent) dividend will take $34,503 which the profit will cover 1.5 times.