Phillipps Impy sees steady demand

Press, 28 November 1977, Page 24

Phillipps Impy sees steady demand

I PA Auckland While prospects for ani i improved performance were I uncertain at this stage, Philjlipps and Impey, Ltd, may | reasonably optimistic because I the majority of its sales were directed toward the! ; home owner and “do-it-your- j self” user. ' The managing director I (Mr S. C. Browning) says ini his annual review that this] would mean a steady over-! | all demand for the com-! [pany’s products. i As announced, the net! [profit fell 19.5 per cent or! [5210,817 from the previous I year’s record level to; [5870,104 in the year to June 30. ; The 4.4 per cent increase Ito $23,960,000 in sales was ; insufficient to cover inj creased costs. All branches traded profitably and although the earning rate on capital fell from 55.2 per cent to 39.6 per cent and the return on

I shareholders’ funds from; i! 18.3 per cent to 12.7 per!' cent the latest figures were! ■ still most acceptable, he says. The decline in the; I building industry had been ; most marked in recent I ■(months. | No great improvement!, [could be expected in thep ■•next couple of years, despite(< some minor endeavours by I ;jthe Government to stimulate!' [activity. ji • The results of the glass ! [contracting division were! (reasonable in the latest year, [but the outlook was not attractive. >; Hardware turnover was '[good in the circumstances, [but profits were affected by lithe financial failure of? ( several major customers. | • ' Sales in the year ahead! [would be restricted, Mr' ■ Browning said. Wallpaper trading was; i good and yielded a! r satisfactory return, but sales; i by the company’s 25 retail!:

i outlets failed to keep pace with inflation. I Goldex Paints Ltd, a ! subsidiary, performed extremely well and profits [were considerably ahead of budget. i Sales by Samson Paints [Ltd, were satisfactory but; .•the earning was reduced by; [delays in cost recoveries. I The result was after 'depreciation $52,000 higher [at $179,938, but tax required $209,415 less at $619,055. | The dividend, up from 15 •per cent to 17.5 per cent (8.75 c a share) absorbed $384,086 compared with $293,560 previously, and is covered 2.3 times if the recommended final dividend of 10c a share is passed. I The balance sheet showed i paid capital up from [51,957,069 to $2,194,776 and : shareholders’ funds $773,405 (higher at $7,255,209. ! Term liabilities are upi [from $2,366,671 to 1 |52,748,686.