W. Jeffery’s sales rise 46 p. c.

Press, Volume CXV, Issue 33967, 7 October 1975, Page 28

W. Jeffery’s sales rise 46 p. c.

(New Zealand Press Association) I DUNEDIN. Helped by sales from newly acquired retail subsidiaries in Auckland and Christchurch, the total sales of Williamson and Jeffery, Ltd, Dunedin-based manufacturing stationers and paper merchants, rose 46 per cent to 810 m in the year to June 30.

But with the latest gross profit of $2.6m (sl.9m previously), the gross return on these sales fell from 27.2 per cent to 26.1 per cent. As announced earlier the group net profit rose 8.1 per cent to $357,351.

All other companies in the group traded successfully. Continued inflation was making the financing of normal trading difficult, despite the inflow of. new funds and a retained profit of $185,136, Mr Nisbet said.-

The profit was after writing off $572,580 more in administrative expenses, at sl.6m„ $31,681 more in depreciation at $151,494 and $31,681 more for taxation at $288,400. A final dividend of 7c a share is recommended making an unchanged He a share (11 per cent) for the year. Total dividends, including those on preference shares, are covered 2.1 times, which was similar to the previous year’s cover. The company’s whollyowned subsidiary, Scripto Pens (N.Z.), Ltd, had operated at a loss. Wallace Carswell (1974) Ltd, which until balance date was a partlyowned subsidiary, also operated at a loss, said the chairman (Mr L. C. Nisbet).

During the year the company raised $500,000 from 11 per centi convertible debenture stock, and $115,000 from the Development Finance Corporation for the purchase of manufacturing plant. The company’s issued capital has increased from sl.4m to sl.6m because of 229,125 shares issued as consideration of majority interests in retail companies and a building in Auckland. This had also created a share premium reserve of $133,555 which along with retained profits increased shareholders’ funds from s2.lm to $2.6m. However, the earning rate on these funds fell from 11.8 per cent to 10.6 per cent. Although expenses again increased substantially, they were not disproportionate to the group’s increased activities, the managing director (Mr H. H. Saunders) said in his review of the group’s business.

The principal source of increased expenses had been salaries and wages, and partly because of the requirement of the New Zealand Superannuation Act, the cost of contributions to employees’ superannuation schemes was increasing. The group’s sales for the three months of the current trading year were in accordance with budgets, and if this trend continued another satisfactory year should result, Mr Saunders said.