Waltons Lifts Dividend After Profit Increase

Press, Volume CX, Issue 32395, 7 September 1970, Page 18

Waltons Lifts Dividend After Profit Increase

The group net profit of Waltons, Ltd, rose by 11.5 per cent to $5,217,302 in the year to July 31. The dividend has been increased from 12.5 to 13.25 per cent.

The profit was after $245,706 more for tax at $2,151,980. and $127,850 more foi depreciation at $1,082,585. The earning rate on ordinary capital increased from 25 to 27.8 per cent the directors said in the preliminary statement The dividend received from FNCB-Waltons Corporation, increased by 14.5 per cent to $643,678.

offset these, premiums have been increased and the company is continuing to be selective in the business it accepts.

The net profit recorded by FNCB-Waltons Corporation, Ltd, increased by 15.1 per cent to $1,529,139. The take-over of Anthony Hordern and Sons, Ltd, is expected to prove advantageous in the future. To gain the greatest value from this acquisition, the consolidation of various Hordern activities with those of Waltons had been effected, the directors said. This has already started to show “real benefits.” Miller Anderson, Ltd, in which the company has a 55.9 per cent interest, had a good year. Sales and profit both increased and the directors had recommended a dividend of 6 per cent, Waltons’ directors state in their report The Sydney Cold Stores, Ltd, a wholly owned Waltons subsidiary, increased storage facilities during the year, Profits from this subsidiary were also higher than in any previous year.

Insurance operations were extended to Queensland during the year, and results there had been satisfactory, they said.

Sales of retail stores trading as Waltons increased by 13.3 per cent durng the year, and new sales records were established in New South Wales, Victoria, and Queensland, the directors said. Five new stores opened during the year; they are at Doncaster and Glenroy, Victoria: Coifs Harbour, New South Wales, and Townsville and Indoorpoorilly, Queensland.

These are all trading satisfactorily and should make an increasing contribution to the company's future profits, they say. Retail expansion priorities have been established for the next five years and plans are well under way for a major shopping centre complex in Parramatta, and for a 60,000 square-foot department store at Penrith.

The gross premium income from Waltons Insurance Company, Ltd, increased 49.5 per cent to $5,547,807; provision for unexpired risks stands at $2,020,947 compared with $1,440,931.

Adequate provision has; been made for outstanding! claims. Profits have been affected by increased costs of motor vehicle claims and to help