Q. Morris holds its own

Press, 7 July 1977, Page 12

Q. Morris holds its own

The turnover of Quill, Morris, Ltd, shows satisfactory increases in all areas/ ■and given a stable economy the directors feel that the results for the coming year 1 will be satisfactory, the 'chairman (Mr C. Sturge) isays in his report with the I 'annual accounts. The promotion of the 'group’s national brands hasi I been successfully main-i Itained, he says; the company. • has obtained two further im-l i portant agencies. — j The Rue des Vins and the' I Plasa de Vinos continue to j I expand, reflecting the increase in home consumption, j ! Shareholders will be asked iat the annual meeting to ap-j I prove the issue of 375,000 ' 50c 12 per cent convertible!

, specified preference shares, . and to give the directors I authority to issue staff ' I shares to a limit of 5 per 7 cent of total capital and 5 ■ per cent of any one class of •'share. As announced, group net 1 profit fell 1.6 per cent to '5181,762 in the year to March 31; on an equity basis : the result fell from $195,059 to $183,099. However, the (profit fall is in the parent company accounts in the • treatment of the increased ; dividends received from ■i associate companies is re-. i sponsible for the appearance.) | Turnover increased 20.7 per i | cent, but gross trading profit; after the expenses of selling, j I despatch, and administration; was only steady at $364,355.1 expenses were 26.6

;per cent higher, mainly 7 be-1 . cause of the sharp rise in interest on term liabilities, ifrom $35,111 to $54,664. ' The provision for depreciation was $5300 higher at i $19,528, but the provision; for taxation was $15,275 (lower at $121,826. The earning rate on aver-.' age shareholders’ funds falls; from 17.6 to 13.8 per cent. ! The unchanged dividend of 15.5 per cent again takes; ;$58,125 — covered 3.2 times' (by the profit. Net current' assets is$54,727 higher at $1,066,263; (the current ratio is 1.9:1. I I Shareholders’ equity is' (unchanged at 44.1 per cent;; (the funds of $1,377,912 are (comprised of $375,000 ordinary capital, $101,640 capital; 'reserves, $25,000 noteholders; I bonus share account, and,' I $876,272 revenue reserves.l I I Goodwill remains in the ( books at $119,108. ; The 50c shares last sold at" 150 c for a dividend yield of;: 5.2 per cent and an earnings l yield of 16.3 per cent. The: price-earnings ratio is 6.2, . and the net tangible asset ji backing 168 c a share.__u