Good recovery by D.I.C.; profit 44% higher

Press, Volume CXVI, Issue 34107, 20 March 1976, Page 19

Good recovery by D.I.C.; profit 44% higher

eu? Zealand Press Asscc'iattor,)

DUNEDIN

D.1.C., Ltd. the Dunedin-based retail group, has reported a 14 per cent increase in profit for the latest half-year to January 31—representing a sti ong recovery in earnings.

Unaudited estimated net profit after taxation for the i six months is $280,000 — compared with $194,000 in the corresponding period last year. In the comparable period lasi year the company reported, a significant drop in net profit after taxation, but at that time ho half-year figures were disclosed. i In the latest full year to | .Tuly 31, 1975, the D.I.C. experienced at 38 per cent fall in lax-paid profit, from $1,081,821 to $671,043. Turnover for the six months to the end of January this year was $11,650,000, an increase of 151,430,000, or 14 per cent. I Building expansion now I completed in the Hamilton I store had contributed substantially to the increase in isales, the directors said: I Turnover in the latest ivear to July 31, 1975 had in-

creased 4.3 per cent to I nearly $21.5m. The directors report that! in the latest half-year the] board had adopted a straighti tine method of calculating! depreciation for assets pur-i chased after August 1. 1975 J Up to that date depreciation] had been calculated at rates! allowed by the Inland Reve-I nue Department for taxation! purposes. This has had the effect of! increasing estimated net pro-! fit after taxation by $70,000] this period. This increase,! however, had been, partially i offset by making a new pro-! vision for accrued holiday pay amounting to $76,000] before taxation. While the increased profit] trend was pleasing, the fig-i : tires, which were in line-' ]with the new requirements] of the Stock Exchange Asso- 1

delation of New Zealand, imight create a wrong imc pression in the minds of : shareholders and investors Jas to the result for the full iiyear ending 31 July, 1976, J the directors said. J “Although the second half ] of the financial year usually ’]provides a larger proportion J of turnover and profit, the 1 1 uncertain trading outlook ,] might counteract the normal I trend. addition it would be ] unrealistic to forecast with J any degree of certainty the . | year’s net profit until a , (physical stocktaking and ; I valuations have been taken ] into account.'’ Given a continuation of ■(current trading circum:!stances the directors would ; I expect a dividend no less • 'than that declared last year.