Brother maintains lead

Press, 6 July 1977, Page 24

Brother maintains lead

The knitting machine* of Brother Distributors, Ltd, > again sold well, maintaining their leading position on the New Zealand market, says the chairman (Mr I. J. Wil- ! son) in the annual report. I The recent introduction of the new model KHB3O, featuring a colour-changing unit ,has met with an enthusiastic reception and should sell well this season, he says. Sewing-machine sales have been steady for some years, ’ but benefits are expected from the model 750 incorporating an electronically controlled three-speed motor. The Bevknit stretch patterns continue to gain in popularity and show a 150 per cent rise in sales this year, and because of their 1 usefulness a strong demand for the Brother models is expected this financial year. I Although typewriters now carry sales tax amounting to ’ 40 per cent, sales in this line are buoyant, and a new' portable model with a cassette ribbon is expected to I be popular, Mr Wilson says. * There was a small increase of about 5 per cent in total sales, and expenses were reasonable contained.

The recommended final dividend of 6c a share, makes an unchanged 10c a share (20 per cent) for the year. It is payable on July 22, ex dividend July 12. The $45,000 required was covered 2.6 times by the trading profit for the year. Mr Wilson says the board of directors had hoped to increase the annual dividend rate, but as the regulations governing dividends had been extended this was not possible. As reported the group net trading profit fell $9O to $115,011 in the year to March 31. Gross profit from trading rose 3.3 per cent to $551,412, but expenses before taxation, rose 7 per cent to $351,781. The provision for depreciation was $607 higher at $10,383, but interest expenses were reduced $4510 to $l6lB. The provision tor taxation was down $3596 at $92,220. Shareholders’ funds rose $70,011 net to $566,926. Ordinary capital of $225,000, and capital reserves of $10,309 were unchanged. Retained earnings rose $BO,Oll to $331,617, but

$lO,OOO of this was from incorporating $lO,OOO of “stock reserves," stated separately previously. The earning rate on shareholders’ funds was down from 23.4 per cent to 21.6 per cent. Current borrowings were down $51,627 at $278,178.

Fixed assets, at net bookvalue were $350 higher at $68,057. Investments , at cost, in shares of listed companies, rose more than four-fold, from $2643 to $11,325, but there is nothing in the report to show how, or why.

Net current assets rose $60,979 to $492,544, and the current ratio rose from 1.8 to 2.0 to 1.

Import deposits with the Reserve Bank totalled $74,098 (43,071 last year) at balance-date, but stocks in hand and in transit were down $22,763 at $618,258. Net tangible asset-backing a share rose from 111 c to 126 c. At 110 c the ordinary shares had a dividend yield of 9.1 per cent, and an earnings yield of 23.3 per cent. The price-earnings ratio was 4.3.