Smith, Brown Expect Satisfactory Year

Press, Volume CX, Issue 32360, 28 July 1970, Page 20

Smith, Brown Expect Satisfactory Year

(New Zealand Press Association)

AUCKLAND, July 27.

Smith and Brown Holdings, Ltd, Auckland furniture group, lifted net profit by 39.5 per cent, or 1166,236, to $586,572 in the year to May 31, the chairman (Mr E. T. Gillett) says in the annual report.

Earnings of the Maple group, taken over early this year, are not included in the result A note to the accounts shows that Maple earned a steady profit of 3188,818 in the year to January 31, Smith and Brown sales rose 20 per cent to a peak of more than sl2m. All branches traded on a satisfactory basis, with the more recently • opened branches showing considerable improvement The easing of the restrict tions on long-term credit sales bad a beneficial effect in the latter part of the year. Although retail trading of the group improved, the company’s earlier diversification into wholesaling, contract selling and manufacturing was a material factor in the company’s growth in the latest year. NAME TO CHANGE Sales this year should be at a satisfactory level, with the new outlets contributing to turnover, and benefits from the Maple merger. The annual meeting will be asked to approve a change in the name of the company to Smith and Brown Maple Furnishing, Ltd. The latest result was struck after providing $1266 less for depreciation at $71,845 and $182,171 more for tax at $587,178.

rose sharply from 12.5 to 15.8 per cent, and that on average ordinary capital (excluding the Maple shares) from 34.4 to 45.2 per cent.

The steady 124 per cent dividend takes $155,484 in addition to the $24,000 preference charge. The earning rate on average ordinary shareholders’ funds, as they would have been without the issue of shares in the Maple takeover.