Record Profit By Ashby Bergh

Press, Volume CIX, Issue 32126, 23 October 1969, Page 22

Record Profit By Ashby Bergh

Ashby Bergh and Company, Ltd, Christchurch hardware and builders’ supplier, had a particularly successful year, with record sales and a corresponding profit increase.

The net profit rose $22,867—0r 33.9 per cent—to $90,407 in the year to July 31, after much higher depreciation and taxation provisions.

The directors recommended a final dividend of 7.5 per cent, and a bonus dividend of 2.5 per cent, making a steady 15 per cent total. The payout again takes $42,000, and .is covered more than twice by the profit The earning rate on average shareholders’ funds improves from 5.9 to 7.5 per cent and the rate on the steady $280,000 capital is up from 24.2 to 32.3 per cent. Mention was made in the 1968 report of significant rises tn overhead expenses. In spite of that expenses for the period were kept well within the budgeted ratio, says the chairman (Mr C. W. Evans) in his report with the accounts.

The only significant move in the balance sheet is in respect of a reduction in fixed assets arising from the sale of the Greymouth properties. Unpaid purchase money is

represented by a mortgage investment of $lB,OOO. The buoyant trading has necessitated the holding of more diversified stocks and an increase in sundry deb-

tors, and the net profit has been built into these assets. Working capital -improved, but the liquidity ratio declined slightly, to 1.8 to 1. The year’s accounts reflect the advantages from the establishment of the new premises in Manchester Street, which greatly facilitated service and display, as well as storage.