Challenge for Taylors

Press, 27 August 1977, Page 19

Challenge for Taylors

| Commercial |

The resalts of Taylors Drycleaning and Laundry Service, Ltd, in the three lmonths to June 30 show (that to better last year’s profit will be a challenge, I said the chairman (Mr D. L. Taylor) at the annual meeting yesterday. j However, the first price | increase for 11 months was | implemented on July 1. Although this was only five to six per cent, it has made i seme difference to the July figures, he said. ’ “On the other hand, the i female wage rate has risen 134 per cent in 12 months, ‘partly because of the final steps in equal pay. I “With inflation rates re-1 maining at high levels, the [cost of replacing equipment (continues to increase. This I is not made easier by the 10 (per cent tax on machinery

s (imposed by the Govern-1 ziment.” ? As announced, Taylors’] . group net profit rose 76 per > cent to $128,799 in the year ,: to March 31. Mr Taylor said that the] - company had budgeted for a| isteady increase in sales and ; profits in the current year, i ; “but this is a labour in- - ; tensive industry and vulner-l i able to movements in wage: t rates.” <■ The latest year had been: one of consolidation and ra-l il tionalisation of the acquisi-j i ; tions of Cloustons Dryclea-' . ners, Ltd, Christchurch, and--1 Preens Al, Ltd, of Timaru, -both of which were bought] ■jin the previous year. “The effect of fully in-] (tegrating these purchases in i-the company structure is i 1 evident in the latest result. -i “Escalating costs, espe-]

i cially wages, fuel and utilities have necessitated tight (controls, and it is pleasing Ito report a profit improvement from these endeavours. “However, there is a limit i to opportunities for in- ] creased productivity and expense control and if the -effects of inflation are to be {overcome, some relief from (the severe price restrictions (is essential.” he said. I For many years it has [been obvious that the Christchurch laundry would [have to be moved from its central city site in Kilmore: (Street. The buildings are old] and the plant layout cram-| iped. There is also a problem] (of meeting earthquake regulations. The site was sold and the] (company has been relocated ( in Clarence Street, Riccar- ] (ton, close to the group’s!

-;major linen supply custom-’ t ers, he said. ? Plans are well advanced - for the new buildings, the . construction of which should t start in early October. “A further Christchurch ; - development is taking place ; in Sydenham where a mod-; j ern drive-in drycleaning! i business is being built. > “There has been a noticeable drop in the number of s overseas tourists, and if this ! trend continues, it will limit I growth and affect future > profits in the laundry division.” l! The shareholders approved i the resolutions recommendi;ing a final dividend of 7c a] - share (7 per cent), the one- ; for-seven bonus issue, the praising of directors’ fees from $6250 to $8750, and the | issue of $lOO,OOO convertible --specified preference shares.