Taylors confident

Press, 15 August 1978, Page 21

Taylors confident

A 120-day price freeze, boilermen and drivers’ strikes early in the year, and disruptions in the freezing industry affected the operations of Taylors Drycleaning and Laundry Services, Ltd. and the company suffered a sharp set-back in the year to March 31. The downturn in tourism during the last 12 months also affected the company. But the directors believe that the company has- laid the base for better profits in the future, the chairman (Mr D. L. Taylor) says in his review. “In the coming year, benefits should arise from our Queenstown acquisition, the Christchurch redevelopment, and other rationalisation, and although tourism has not shown the growth expected in recent months, we are well placed in the key tourist areas of the South Island to meet an upsurge in tourist activity,” Mr Taylor says. The falling trend in drycleaning volumes appears to have been arrested, and this should continue to be a profitable area of operations, he says. The directors believe that these factors, together with aggressive marketing and

strict management controls,, i will lead to a much im- < proved profit for the current' < year. i “Although it is early in J the year, results to date give < every indication this will be the case.” Mr Taylor says. As announced, group net; profit fell 39.9 per cent to i $77,367,- after providing! $14,436 less for depreciation! at $96,780, and $54,915 less for tax at $49,494. Sales rose 6.6 per cent to I almost S3M. The unchanged ordinary I dividend of 13 per cent! takes $52,000, and is covered 1.4 times. The final dividend! of 7 per cent is free of tax.!' The earning rate on average; shareholders’ funds — allow-! ing for the preference capi-! tai and dividend — fell from! 17.7 to 8.9 per cent. Net current assets rose! $354,740 to $651,185; the; current ratio is 3.2 to 1. Ordinary shareholders’!; equity is 47.6 per cent. The: ) funds — which rose I, $345,031 to $1,072,264 — are! comprised of $400,000 ordi-)| nary and $lOO,OOO preference!: capital. $223,497 capital re-|' serves, and $348,767 revenue |i reserves. The shares last sold atij 120 c cum dividend, for a!;

dividend yield of 10.8 per cent and an earnings yield of 14.9 per cent. The priceearnings ratio is 6.7, and the asset backing 243 c a 100 c ordinary share.