Commercial Good results for Haywrights in South offset by Auckland Stores

Press, 4 October 1977, Page 46

Commercial Good results for Haywrights in South offset by Auckland Stores

The unaudited group net profit of Haywrights, Ltd. for the year to July 31 declined; 2.2 per cenl to $868,000. after provision for taxation I of $590,000 ($683,000) and [including share of retained! I profits of an associated com-1 Ipany $17,600 ($9400) and ‘Capital profits $29,700 (nil). !

I The directors say in the preliminary report that alter ;a first half in which profits! 'increased 33 per cent, therej was a sharp decline in the remainder of the year reflec[ting the dramatic change in ithe trading climate and consumer spending. ■ •‘While gross profit rates' were fully maintained, sales volume suffered as predicted, and the second half increase was insufficient to meet the increased costs — especially of wages and interest ’ on borrowings to support stock levels affected by inflation.” they say. ’ "Sales for the year total--1 led more than $54.0M com- ’ pared with 545.3 M last year. ' "The increase reflects a I full year’s sales from the former Milne's stores not all '[of which are yet making a ’lcontribution to profit. “Additional attention is ’ being paid to the Auckland I group when the performance 1 is offsetting good results elsewhere. The current econ--1 omic conditions are making the task of developing the ! | Auckland stores more ’ difficult than expected,” the 'directors say. I I'he profit represents an

earning rate of 11.1 c a share on average ordinary capital. ’ and 7.0 per cent on average shareholders’ funds after adjustment for the revaluation of properties by $273,000 to Government Valuation. The directors recommend a final dividend of 4 per

cent making an unchanged 9 [per cenl for the year. The; dividend will again be paid from the share premium reserve account (making it taxfree in the hands of most shareholders) after the annual general meeting which ! will be held on December 5. ■ ex dividend November 15.