COMMERCIAL Hallenstein improves margins on sales

Press, Volume CXI, Issue 32703, 4 September 1971, Page 20

COMMERCIAL Hallenstein improves margins on sales

(New Zealand Press Association) DUNEDIN, September 3. A sales increase by Hallenstein Bros, Ltd, of 19.8 per cent resulted in an increase in net profit of $103,254, or 37.9 per cent, at $376,514, the chairman (Mi- P. W. Fels) said in the annual report for the year to June 30.

The increase was in some measure attributable to the unprecedented inflationary movements which took place during the year, but more particularly to a continuing vigorous merchandising programme, Mr Fels said. In addition the company received the benefit of a full year’s trading from four branches opened during 1970. The profit before tax was $744,514 ($546,060 last year), and taxation provided was $398,000 ($272,000). The payroll tax was $21,962. The total amount of dividend recommended on ordinary shares amounts to $146,473, compared with $129,950 in 1970. . An issue of 130,150 ordinary shares was taken up last September, and in May 3000 ordinary shares were issued as part of the consideration for the purchase of the assets of Gilbert Coombes, Ltd, Matamata. Subject to the approval of

shareholders, the directors proposed to make a bonus issue to ordinary shareholders on the register at September 13, in the proportion of one ordinary share for every eight held at that date. The 12.5 per cent dividend rate is the same as last year’s.

s Shareholders’ funds ins creased $395,961 to - $2,991,838. t The earning rate on ordin- - ary shareholders’ funds was s 14.1 per cent, compared with t 11.1 per cent last year. Working capital was i $456,554 higher at $2,080,906 t and the ratio rose from 2.7 to 2,8 to 1.