Solid position for Early Bros.

Press, Volume CXII, Issue 32892, 15 April 1972, Page 18

Solid position for Early Bros.

The trading year for Early Brothers Dental and Surgical Suppliers, Ltd, was one of considerable difficulties, with costs continuing to rise and higher payroll tax, the chairman (Mr I. J. Wilton) said in his report with the annual accounts.

The subsidary company. I Ora! Supplies, Ltd, again tradi profitably, but at a lower (level because of losses in the (scientific instrument division. Results of this division did not come up to expectations and it was closed with a non-recurring $5785 loss on stock disposal. Good will of $12,419, arising from the purchase of the scientific instrument division has been written off in the appropriation account. However a $5168 dividend from the associate company, McGaw Ethicals, Ltd, was of considerable assistance to Early Brothers in increasing its profit in the year to December 31. No dividend was received from this source last year. As already reported in a preliminary statement, con-1 solidated net profit recovered by $6560 to $62,452. This was after providing $721 more for depreciation at

$23,202 and $16,497 less for tax at $39,800. The dividend is unchanged at 11 per cent, and together with the preference dividend takes $38,099.

The earning rate on the unchanged capital of $341,994 rose from 16.2 to 17.7 per cent, while the rate on average shareholders’ funds improved from 7.1 to 8.7 per cent—both rates allowing for the preference capital. The financial position of the company—already strong —improved further; working capital increased from $377,136 to $596,327. The current ratio rose from 1.6 to 2.2:1. A slightly higher level of stocks, and lower current liabilities, are the main factors responsible for the greater liquidity.