Haywrights gloomy

Press, 30 March 1977, Page 18

Haywrights gloomy

In spite of an increase of 33.1 per cent to $636,537 in group net profit in the six months to January 31, the directors of Haywrights, Ltd, say that prospects for the final six months are not encouraging. In a half-yearly report, they say that the continued emphasis on reducing consumer spending by the Government will affect the industry.

Sales totalled $28.8M, including sales from the former Milne’s stores. On a strictly comparative basis, sales rose 11.1 per cent, “which is regarded as satisfactory.” Sales in the three months to October 31, were slow but there were strong sales in the three months to January 31 in anticipation of price increases.

The gross profit improved from higher sales in apparel, fabrics and furnishings, reflecting the objective of improving the sales mix. While the former Milne’s

stores did not perform to budget expectations and the profit from this source was lower than anticipated, costs have been reduced and gross profit earnings restored to a level consistent with Hayi wrights performances. Rationalisation of services and purchasing has already been of benefit to the whole group. Every effort is being made to maintain sales and hold expenses and the plan for a sales mix that will improve profits within the existing restrictions on margins will continue.

With further cost increases expected, especially in wages because of a final equal pay step in April and the recent 6 per cent wage order, sales must be maintained or the profit will suffer-

Pre-tax trading profit rose 27.5 per cent and the taxation provision rose $82,469 to $479,894.

A steady interim dividend of 5c a share (5 per cent) is payable on April 29.