Modest recovery in Beaths' profit

Press, Volume CXVI, Issue 34130, 17 April 1976, Page 18

Modest recovery in Beaths' profit

Beath and Company. Ltd. Christchurch-based retailer, has arrested the downward trend and made a modest lecovery in profitability for the six months to January 31.

The unaudited tax-paid profit or the first half of the current financial year iwas $60,647. the chairman: i(Mr W. T Barnes) says in a! ; detailed half-yearly report. : j This compares with I $28,670 for the six months I to January 19 last year and >5101,390 two years ago. Mr Barnes says that the I improvement stems princiIpally from two main factors, i “Firstly, the company’s management has been unrejmitting in its effort to conl trol expenses - a difficult ■ enough task during a period iof continued inflation and at i a time when the effects of i equal pay c.re being felt imore substantially. I “Secondly, sales have > shown a significant increase, from $2,941,609 to $3,614,343 — an increase of 22.9 per icert (adjusted to 26 weeks ! 15.4 per cent).” (The company has ! changed its balance date ’from J'ly 19 to July 31, and i the first half of the current [year has therefore been j extended by about two (weeks to January 31). Careful consideration has : been given to the company’s idi'idena policy, says Mr Barnes, and it is felt that I the time is now right when a slight upward interim dividend is justified. Accordingly, the interim dividend} ion ordinary shares for the (period under review will be (5 per cent, (last year 4| per cent). “. . . for the two months since balance date, sales have . remained at levels comparable with the first six months, and there is optimism tha* these le*’ls will be sustained. ‘‘However, it is difficult to predict with certainty the I company’s performance for !the rer tinder of this finan-

licial year. The impact of the : removal of subsidies, to- ■ gether with the significant i upward move in interest rates, will be felt in full {over the second period. , “A great deal will depend ; on Government measures to i control the rate of inflation, but whatever does happen it is abundantly clear that there is an even more urgent need for some relief to the retailing industry from the present unduly harsh re- ■ strictions,” says T ' Barnes. :.ig this period, and for .he first time, it was possible to use effectively : the m 'demised facilities on the increased floor area in ■ the main city store. In this regard, only the cooking facilities on the lower ground floor are yet to be com- ’ pleted, but when these do

I come ir. o use, the compan y [Will have exceptionally tine catering facilities. Already the gourmet bar is becoming widr v known for its diverse range of exclusive foods. “In keepii.j with almost every other commercial ente.prise, the company is still grappling with the problems of liquidity. Increased stocks at higher values are needed to service the enlarged city store, while the cc_t of services essential to the company’s well-being, continues to rise. “Nevertheless, your directors expect that the partial recovery from the disappointing results of the last financial year will continue, and management is well aware of the need to ensure that this progress is maintained,’’ Mr Barnes says.