No cheer for Haywrights shareholders

Press, 6 December 1977, Page 27

No cheer for Haywrights shareholders

I Commercial

A gioomy picture was sketched for the shareholders of Haywrights. L-u, who attended the anme®ting The (.hairman <>ir K. R. Trotter), in a realistic address, gave the unvanusned truth, bui was unable to provide any cheer. The concern for the immediate future voiced by the directors in the annual report was confirmed by the results for the first quarter to the end of October, he said. Turnover increased only 2.4 per cent, although, when adjusted for stores that have been closed, the true comparison is 6 per cent," said IMr Trotter. "This, however, is inadequate to match increased costs, let alone to cope with the present level of inflation. “All retail statistics point to a considerable lowering of consumer spending in real terms, and the hardest hit! are general department and I variety stores and appliance! retailers. We are concerned I in both areas.” “Profits for the quarter are below those earned in the same period last year, i and it is unlikely that re- , suits for the half year will ( be very satisfactory. Novem-I ber has seen a further dete-l notation in the sales pat-1 tern, but we are hopeful thatj in December we will see’ some, improvement .

i "Prospects for the new ('year are not good. A lessening of economic activity and ■the likelihood of further unemployment, shorter ■ working weeks in some industries, and a general tightlehing, are not good omens i (for the retail industry”, said [M* Trotter. “The Government has con-j Isistently set its face against i relief for retailers, either by, ■ way of better margins or! taxation adjustment for inflation. It would appear they!

t are expecting the industry to; .sort itself out. with the wea-, ker operators going to the; I wall. Competition has be-1 ■ come fierce and. while this' may be a good thing, espe- ■ j cially for the consumer, we j art entitled to complain! ■about our inability to have a j markup formula that allows I recovery of legitimate cost ! increases. “It would appear to be a (very appropriate time for I the Government to remove I price control over a wide range of goods and allow the very strong competitive forces to safeguard the consumer and the consumer ■price index. ; “We are disturbed at the [impact of further increases iin wage rates for both clerical and retail-shop employees, when turnovers are not increasing. The inevitable re-1 suit will be a further reduc- j tion in staff numbers if we I are to maintain even a min-1 imum level of profitability, i “Your board of directors.! and management, are very

(conscious of the challenges! [ahead and are seeking all i possible avenues for the maintenance and improvejment of turnover on a profi|table basis and for the in--itroduction of further effi-i jciencies in the cost! (structure,” said Mr Trotter.