Record sales, higher profit by F.T.C.

Press, Volume CXI, Issue 32775, 27 November 1971, Page 22

Record sales, higher profit by F.T.C.

(New Zealand Press Association) WELLINGTON, November 26. The Farmers’ Trading Company, Ltd, achieved record sales and an increased profit for the half year to September 30, the chairman (Mr R. H. Busfield) says in the interim report.

Sales for the six months increased 19.8 per cent to $24,540,545 but increases in practically all expense items resulted in the profit being only marginally better than for the corresponding period last year.

The rate of sales increase declined in the latter part of the period and this trend had continued to date. In addition the recent sharp rise in clerical wages and the expected pay increase for retail

staff, coupled with increases in other expenses including the new freight, postal and telephone charges, will bear heavily on retailers, Mr Busfield says.

Because percentage gross profit margins are pegged to existing levels by legislation it is unlikely that increased costs will be fully recovered unless there is an unexpected large increase in sales, he says. The company is closely

studying all items of expenditure and pushing ahead rapidly with its computer programme. Although the preparatory work for the computer involves extra expense the company is convinced that a more researched and carefully prepared programme will provide it with an efficient method of handling its large number of credit accounts.

The year to date has been one of rapid expansion for the company. New stores have been opened at Takapuna, Mangere, Taupo, and Levin and a Calder Mackay store at Ashburton. In all cases initial sales were up to or in excess of budgets, Mr Busfield says.

Herald profit up The group net profit of the Herald and Weekly Times, Ltd, increased $1,170,974 or 12| per cent to $10,544,134, in the year to September 30, the directors have announced.

Rights market

Buy Sell Sale B.O.S. ... — — 8 Fletcher .. 31 — 33 I.C.I. N.Z. .. 16 Mot. Traders .. — — 30 N.Z. Cement ..2—2 R. A. Brierley .75 — 78 Saunders .. 95 120 —