Quill, Morris Progress

Press, Volume CX, Issue 32321, 12 June 1970, Page 16

Quill, Morris Progress

The group net profit of Quill, Morris, Ltd, rose by $2883 to $46,683 in the year to March 31. The increase was attributable to increased sales in the more profitable part of trading, says the chairman (Mr F. S. !Taylor) in his report.

| The result is after increased provisions for depreciation and taxation. As announced, the dividend is held at 10 per cent: it requires $25,000, covered 1.8 times. The earning rate on the

steady $25,000 improves from 17.5 to 17.8 per cent, and the rate on average shareholders’ funds goes up from 8.4 to 8.6 per cent. The net current assets rose by $17,238 to $227,723. An increase in sundry debtors and cash balances, a decrease in sundry debtors, and the elimination of the bank overdraft are the factors responsible for this improvement in working capital. They were off-set by a decrease in stocks, and the increased liability for tax.

Mr Taylor says that turnover and profit might be affected by adverse factors next year. Without defining

these factors he goes oh to say that the company is making every effort to solve the problems. Referring to the last year, Mr Taylor notes “considerable gains” in certain avenues which have contributed materially to trading results. “Generally speaking although the over-all spirits market is still depressed, sales have not declined during the year. “Sales of Scotch whisky which have sbown a serious decline over the last two or three years, have levelled off and are not expected to drop further.

“White spirits, mainly gin and vodka, improved slightly, this increase, however, being offset by an almost similar drop in brandy sales.

“It is in the American bourbon field where the company has done very well.” Sales of one brand have exceeded all expectations since import controls on bulk spirits were freed about two years ago.

“The other encouraging side to our business,” says Mr Taylor, “is the continued increased sales of New Zealand and overseas wines.”

Wine sales increased by 19 per cent. In 1968 the increase was 14 per cent and in 1969 it was 27 per cent Foreign wines, limited by import controls, total 40 per cent of wine turnover and New Zealand wines, limited in certain major cases by quotas and availability, 60 per cent Mr Taylor remarks: “Indeed our major suppliers, Corbans Wines, Ltd, ... in spite of large annual increases in production, are finding it difficult to meet the demands of the New Zealand market "Our company’s contribution and support to this thriving and growing New Zealand industry is therefore very good and contributes tnateriially to our profitability," added Mr Taylor.