Haywrights does not escape

Press, 23 October 1978, Page 15

Haywrights does not escape

Playwrights, Ltd, the Christchurch-based department store chain, was hard hit by the economic depression in the second half of its financial year. The final dividend has been passed, after a steep decline inprofit — reflecting the difficult retail trading conditions of the ' ’ger part of the year.

Net earnings for the year ended July 31 were $'79,000 —compared with $875,987 the previous year, and $203,600 for the first half of the year. No tax was payable; last year’s tax was $597,191. This year’s profit includes credits from • the

provision for deferred taxation account of $99-500. Further taxation allowances totalling $282,000 are carried forward to be offset against future liability for taxation. Sales totalled SSI7M, a fall of 1.1 per cent after allowing for stores closing. “The profit achieved is most ’isappointing,’’ say the directors. “The year was difficult because of the downturn in consumer spending, especially in the field of consumer durables. A re' covery occurred in the last two months of the financial year but too late to have any significant effect on resuits. “The board is developing positive plans to improve the company’s financial and profit position. “The directors have carefully considered the dividend policy and have decided that, in the circumstances, no final dividend will be recommended this year. Shareholders’ 5 per cent discount on purchases will, however, be

continued and paid for the year ended July 31 on December 8. The 5 per cent interim dividend rate therfore becomes the full rate for the year.