Milnes completes Queen St move

Press, Volume CXIV, Issue 33693, 16 November 1974, Page 21

Milnes completes Queen St move

(.New Zealand Press Association) AUCKLAND. Milne and Choyce, Ltd’s preparations for next year’s move from the Queen Street store to the downtown shopping complex are “well in hand,” according to the company’s annual report.

“When the proceeds of our sale of the present Queen Street store are received in May we will be able to repay the expensive short term borrowing we have been forced in to," said the chairman (Mr R. S. Milne) in his annual review.

However, liquidity was under “considerable pressure” and cash resources would be “considerably less than we had calculated twelve months ago.”

Mr Milne said a debenture trust deed would soon be prepared and “when the overall financial climate makes it viable” a long-term debenture issue will be made to allow the distribution of profits from the Queen Street store sale to. shareholders “and establish a better balance between equity and debt.”

A profit of $66,849 in the year ended July 31 was, as already reported, 15.5 per cent up on the previous year’s results. But Mr Milne pointed out in his report that earned trading profit had fallen “far below” the planned level. Although retail sales were 18.3 per cent higher to $10,237,000, there were times when sales were disappointing, he said. Net profit from retailing amounted to $47,128. Total operating expenses increased $431,000 during the year, with “the biggest burden” being a $241,000 increase in the wage bill.

"Award increases of about 20 per cent for the year included the general wage order effective from July 1, together with a further step toward equal pay.” Although total wages decreased as a percentage of sales, said Mr Milne, they rose in money value to a higher level than had been expected. Sales for the first two months of the current year were up to budget, but, Mr Milne said, the company could not be certain that, in the present economic circumstances, people would necessarily have the confidence to continue spending at the same rate as in the past year. Sales for the summer season, however, were expected to be “satisfactory.” The directors are recommending a final 2.25 per cent dividend that, together with a 4 per cent interim dividend paid in May, will mean a total payment of 6.25 per cent for the year. The previous year’s dividend totalled 3.75 c a share, or 7.6 per cent.