Spectacular Leap In Edmonds Profit

Press, Volume CIX, Issue 32010, 10 June 1969, Page 22

Spectacular Leap In Edmonds Profit

T. J. Edmonds, Ltd, the Christchurchbased food group, raised its profit for the year to March 31 by 81 per cent to a record $188,030. The company has tripled its earnings since it became a public company six years ago.

The directors expected the good result when they announced an increased dividend in April. This 15 per cent payment, compared with 12| per cent last year, was now confirmed, the chairman (Mr C. W. Evans) said yesterday. The new dividend will be paid on capital which has been increased through last year’s bonus and cash issues by 25 per cent to $577,500. It will take $85,875, compared with $56,250 last year, and is covered 2.2 times by the profit. The earning rate On capital has been lifted from 23.1 per cent to 30 per cent. Mr Evans said the high earning rate of the group could be expected to be main, tained or improved through the success of its subsidiary companies. He cited the fall in taxation provision, through the group's export growth and its acquisition of Graham Stew, art and Company, Ltd, after that company had made a substantial loss, as a cause of the good profit. Taxation fell from $78,109 to only $2646, and Mr Evans said these favourable taxation circumstances would continue because of more export growth and the carrying forward of amounts offset in the last year. The amount allowed for depreciation rose by $11,731 and $7216 more was provided for interest charges. T. J. Edmonds, whose name has been associated with the rumoured bid for Henry Berry, Ltd, the Wellington wholesale grocery merchant,

earlier this year, is believed to be planning a major move into the prepared foods field. The group’s annual report will be issued within a few days, and it is expected that its objectives will be outlined.