F.T.C. experiences improved sales

Press, 14 June 1978, Page 24

F.T.C. experiences improved sales

PA Auckland i The Fanners’ Tradings Company, Ltd, had some im- | provenient in the first part 1 of May. helped by sales of! colour TV sets after the re- I moval of the 60 per cent: deposit requirement, the chairman (Mr R. H. Busfield): said in his annual review. | After a reasonably goodj I start in the early part of the I year to March 31, sales be-1 1 came difficult, particularly j for home appliances and fur-1 niture he said. There was! 'little change in April, but I some improvement in the! first part of May. As announced, the com-i pany raised sales 4.7 per: cent to $105,838,352, and I group net profit rose a mar-! ginal 2.7 per cent, or $84,972 to $3,217,965. The increase in sales was | well below the 14.6 per cent! increase in consumer prices. over the same period, i In view of the adverse trading and the sharp rise ini wage rates the result was! satisfactory, he said.

The introduction of the 51 |per cent trading stock rebate! iwas a substantial benefit to f I the company ($673,284), both, las an addition to the tax- 1 ! I paid profit and as a reduced 1 cash outflow. This approach to inflation:, was welcome and - would! ; help to sustain employment | iin the retail sector, said Mr.: I Busfield said. The company had com-. ! pleted its terminal install-1 lation in the Auckland area. I I The results had encouraged! lit to expand its points of! I sale system to the larger j I North Island branches,! i which meant that 75 per I cent of the company’s sales | would be transacted through this system. Mr Busfield said the company was now concentrating! on more efficient handling ;and expected this to provide | worth-while rewards when : economic conditions improved. I The result was after provision of $715,538 for deferred profits and interest on

I time purchases. This compared with the previous I year’s $143,625 provision, j but was lower than the '51,014,170 provided in 1976. Aided by stock relief, the i tax requirement was ($ 1,1 2 2,2 22 lower at I $1,440,328, but depreciation | required $150,162 more at I $979,476. The ordinary dividend, [Steady at 15 per cent, required $1,252,734 and is cov- ' ered 2x4 times by the profit, minus the specified i preference dividend at ! $217,806. I The earning rate on capital eased from 36.3 per cent to 35.9 per cent and that on shareholders’ funds from 11.4 per cent to 10.6 per cent. I The balance sheet showed total shareholders’ funds up from $31,025,642 to $32,871,122 with ordinary capital unchanged at $8,351,367. Term liabilities were $ 4 2 3,1 5 1 higher at $16,280,507,