Burke's turnover at record levels

Press, 20 July 1977, Page 20

Burke's turnover at record levels

,1 j The turnover of Burke’s Caterers. Ltd, is running at ■record levels, and the group [is poised to plan for future ■ development in the hotel and catering fields, says the chairman (Mr R. P. Thompson) in the annual report. j i “The directors are satisfied ’ i that, unless there is some! ' unexpected deterioration in : I i 1 I r

the national economy, the future is assured.” he says. Burkes would have increased its dividend in the ] latest year, but for the dividend regulations. The company's profit and | liquidity justified a higher dividend than the unchanged 8.75 c a share (17.5 per cent) which was the maximum it could pay. Shareholders had been patient in accepting the policy to date of ploughing back, rather than distributing. profits. However, Mr Thompson says that they may rest i assured that the board will look closely at this problem i upon any repeal or I modification of the present I regulations. The accounts show the, strong financial position of, the group, and the consoii- ] dation resulting from the’ relatively low capital ex-j penditure during the year. Although expenditure on ] repairs and maintenance was again substantial, the company spent only $47,037 on additions to fixed assets. During the year the catering division served 61 race meetings, compared with 591 previously, and turnover; rose 24 per cent. A sustained effort was I made to control increased] costs and to minimise foodwastage without lowering i the high standards of cate-! ring. Mr Thompson says. Accordingly the company; developed a close liason] with trotting clubs’ com-‘j

mittees. and this proved effective The decline in profits wau reversed I However, the drop in (attendances and the likelihood of extra permits in I the winter months could ‘make trading more difficult ] this year. j As reported, gaoup net ■profit rose 53.8 per cent to a record 5194,563 in ther year to March 31, on ssfies which increased 23.5 per cent to $2,971,339. I The profit was after providing $20X172 less for i depreciation at $47,855. but [588,713 mom for tax at 15152,876. Shareholders’ funds rose $556,327 to $1,702,607, the increase being largely becaise of a nevaluation of lasd up to Government valuation, less the write-off of three buildings. The return on the funds rose from 11.1 per cent to 11.4 per cent, and on steady capital of $325,000 from 38.9 per cent to 59.9 per cent. The recommended final dividend of 5.75 c a share makes a steady 8.75 c a share (17.5 per cent) for the year. It takes $56,815 and is covered 3.4 times by the profit. Working capital totalled $83,690 compared with a working liability of $98,152 previously. The current ratio was 1.1 to one. The shares last sold for 165 c for a dividend yield of 5.3 per cent and an earnings yield of 182 per cent. The price-earnings ratio was 5.5.