Phillipps Impey sees good sales ahead

Press, Volume CX, Issue 32460, 21 November 1970, Page 20

Phillipps Impey sees good sales ahead

(New Zealand Press Association)

AUCKLAND, November 20.

Phillipps and Impey, Ltd, Auckland paint glass and wallpaper merchant and manufacturer, is well geared to achieve additional market penetration, the managing director (Mr S. C. Browning) says in the annual report for the year to August 31.

The sales outlook is encouraging, he says. As announced, the group suffered an 11.2 per cent profit decline during the year. This was attributable to the pattern of sales and higher costs in some sectors. Turnover in the paint division was well maintained, and produced an excellent result, despite rising raw material costs.

However, the glass division produced a lower contribution to profits, because-of the lack of major contract work. The present work load is satisfactory, but with the possible extension of building controls, there is some doubt concerning the buoyancy of the building industry in the year ahead, Mr Browning says. The wallpaper and hardware divisions both traded successfullly. The group net profit dropped $34,026 to $269,929. This was after excluding a capital profit of $34,961 on the sale of the Queen Street building. Depreciation was $9266 higher at $84,516 and tax down by $36,988 at $249,603. Dividend has been held at 12 per cent, requiring a ’steady $163,090. The final 7 per cent will be paid from capital reserves. The earning rate on average ordinary shareholders’ funds fell from 9.8 per cent to 8:3 per cent, while that on capital is down from 22.4 per cent to 19.9 per cent. Shareholders’ funds are $163,623 higher at $3,343,872. including steady capital of $1,359,076.