Commercial Brother pleased with sales

Press, 6 July 1978, Page 10

Commercial Brother pleased with sales

“It is pleasing to record that sewing machines, knitting machines, and typewriters all showed good results, says the new chairman of Brother Distributors, Ltd (Mr L. W. Gazzard) in the ilatest annual report. This is the first annual reiport of Brother Distributors ‘that does not carry the signature of Mr I. J. Wilson as chairman of the board. i Mr Wilson was one of the j founders of Brother Distributors, and after being appointed Chairman at the I first meeting had continued iin office until his sudden I death in February.

, “Although he had contemplated retiring from the i board this year his passing I has been a big loss to all iwho knew him,” the report says. Sales for the year to March 31 were up by 11 per cent, and gross profit rose 22 per cent, but increases in overheads resulted in the net profit being down at $100,535 compared with $115,011 for the previous year. This was after allowing for the 5 per cent tax concession based on increased stocks; an amount of $13,910. The provision for tax was down $34,640 at $57,580, and the provision for depreciation was $1364 lower at $9019. Interest expenses increased $11,090 to $12,708. Total expenses rose 50.0 per cent to $528,648. "Much of the increase in costs arose from a programme of extensive advertising, particularly on television, This was a planned move to present the ‘Brother’ image on a wider scale than previously.

“This year the activity in advertising will be on a more limited basis, and over all with retail appliance trading still depressed every effort will be made to keep overheads to a minimum,” the report says. An interim dividend of 4c a share has been paid, and the directors are recommending a final dividend of 6c a share, a continuation of the 10c a share (20 per cent) dividend that has been paid for the last four years. Net current assets rose . $58,585 to $551,129, and the : current ratio rose from 1.9 to 2.1 to 1. Short-term borrowings increased from $278,178 to $335,926. Shareholders funds increased $55,535 to $662,461, including steady capital of $225,000. The earning rate on average funds was 17.0 per cent. At 100 c the ordinary shares have a dividend yield of 10.0 per cent, and an earnings yield of 22.3 per cent. The price-earnings ratio was 4.5, and the shares had a net asset-backing of 138 c.