Quiet beginning for W. Jeffery

Press, 1 November 1977, Page 22

Quiet beginning for W. Jeffery

The start of the current financial year of Williamson Jeffery, Ltd, had been quiet, consistent with the general trend of business and the lack of buoyancy and enthusiasm in the market, said the chairman (Mr J. P. Cook) at the annual meeting in Christchurch yesterday. The increase in sales overall was running at about 15 per cent, having dropped somewhat from the figure achieved in the first two months to August 31.

“These are difficult times in which to conduct . any business and the company is concentrating not only on increasing sales and grappling with the problems of stocks and debtors, but also on overhauling systems, developing reporting and accounting procedures, and generally seeking to establish where improvements in its activities may be made,” said Mr Cook.

Under prevailing conditions, one could not expect a

spectacular result in the year to June 30, but at this stage, there was no reason to think that a reasonable one would not be obtained.

“This has been a year of change. At the time of the last annual meeting, the move of head office from Dunedin to Christchurch had just commenced and, while activities have been directed from there for close on a year, a considerable period elapsed before it could be said that the new office was working smoothly.” Mr Cook said that the premium-reserve account had been altered, partly by adding back §46,000 which had previously been charged against it but more properly should have been deducted from the profit-and-loss appropriation account. After making this addition, $65,000 had been deducted in anticipation of this amount being paid in lieu of a dividend. Under the terms of a court order, a capital-replacement fund of the same amount had been

established out of the group net profit. “The most significant changes are in term loans, $650,000 and bills payable, over $560,000,” said Mr Cook. "Creditors have risen Cook. “Creditors have risen by $270,000. “These figures reflect the increase in stocks and work in progress of SIM and debtors of $550,000.”

The ratios remain satisfactory — the current ratio is 2.8:1 and shareholders’ equity at 48.1 per cent of total assets.

Mr Cook said that particular attention was being given to the reduction of stock and debtors so that a reduction in working capital may be achieved. Plans were well advanced to erect a new warehouse at Ngauranga Gorge, Wellington. Subscriptions from the specified-preference share issue which closed on October 21, and which was oversubscribed would be used partly for this project.