F.T.C. sales growth slower so far

Press, 13 June 1979, Page 23

F.T.C. sales growth slower so far

PA Auckland Sales by the Farmers’ Trading Company, Ltd, in the current year had continued to increase, but at a slower rate than in the previous corresponding two months says the chairman j (Mr R. H. Busfield) in his latest annual report. Increases in sales tax, j higher petrol prices, and the earless days, would have Isome adverse effect on turnlover, but the marked inI crease in efficiency achieved jover recent years will stand the company in good stead. 'This efficiency enabled the company to raise net profit 45.9 per cent to $4,696,033 in the year to March 31, after a rise in sales of 18.6 per cent to 5125.5 M. The net profit represented 3.7 per cent of sales, against 3 per cent in 1978. The company was concerned that the wide range of goods recently made subject to sales tax would dampen demand, and required additional funds to finance inventories, while competition, and the new price surveillance system, would ensure restraints on price increases. Staff training, particularly through live-in seminar courses, had paid-off handsomely for the Farmers’ Trading Company, says its chief executive (Mr A. T. M. Williamson) in the annual report. Over recent years, the company had been steadily achieving greater efficiency, he says. The short-term seminar courses were held at the company’s motel al the Orewa beach resort. These gave graduated training to all seeking advanceIment in the company. I This year, 400 staff ' (nearly one-sxith of the total) would attend courses. “The skills, and self-con-fidence gained, have enabled many to accept management positions, where it is necessary to understand, and use, the greater flow of information from the new

computer systems,” he says. The computer had already given the company a creditcontrol system as good as any overseas, and its capability is now being extended to give information on inventories throughout the group. The group is working towards all retail units trading as branches of the parent company, with uniform systems, which would not only improve productivity, but also make it easier to transfer executives, and widen their promotion opportunities, says.Mr Williamson. The directors did not expect a need for additional borrowings. Private-place-ments of debentures, to replace maturing loans, had been arranged, and local finance would also replace a $2.bM overseas loan. The company is converting a property in New Plymouth into a 2300 sq m department store, which is expected to be opened in August. The Northcote store was closed following the acquisi-

tion of the much larger store in the Glenfield shopping centre. The accounts show that the proportion of credit-sales, increased. This is reflected i by the addition ot $1,074,1031 more, at $1,789,641, to the reserve for unearned hire-) purchase profits. The annual dividend rate! is being increased from 151 per cent to 16 per cent (8c aj share) on bonus-increased! capital. This requires $1,519,833 in addition to the $217,806 payment on the! specified preference shares. ! The profit represented 11.81 per cent on shareholders’: funds (after adjustment for a $6,610,840 (revaluation) and) 44.7 per cent on capital.) against 10.6 per cent (on) much lower funds) and 29.9 per cent respectively last! year. Shareholders’ funds were $10,581,489 higher at $43,452,611, including capital of $10,020,350 ordinary, and $3,600,000 preference. Term liabilities were red u c e d $3,663,391 to! $10,976,136.