Lower profit for S. Brown

Press, Volume CXV, Issue 33932, 27 August 1975, Page 19

Lower profit for S. Brown

Higher operating costs' have pegged back the profit: of Smith and Brown-Maple; Furnishing, Ltd. The audited, net profit for the year to’ June 30 was s2m. the direct-, ors say. This was a fall of 24.4 per cent on the previous year’s record profit of $2.7m. The directors say that sales were marginally ahead of the previous year. However, the profit was affected by increased operating costs, particularly during the latter half of the year. The lower earnings were in line with expectations. Indications of a tighter second half were given. At that stage, both sales and profits were ahead of the previous year, but a fall-’ ing off in demand for the company's products was! caused by tightening liquid-1 ity and a slowing down in home building. The latest result repre-, sented an earning rate on' ordinary capital .of 62.9 peri cent compared with 83.4 peri cent in the previous year.. The return on average share-1 holders’ funds was 14.5 per cent. The dividend rate was; maintained at the previpus year’s level of 15 per cent. The final payout of 8 per cent would be made on October 7 and shares would become ex dividend on September 29. It would be payable from the share premium account and be taxfree for shareholders.