Dingwell and Paulger continuing to grow

Press, 18 August 1979, Page 17

Dingwell and Paulger continuing to grow

The continued growth and turnover of Dingwall and Paulger, Ltd, is a guide to the market share the company is obtaining, says the chairman (Mr A. A. Dingwall) in the first annual report of the Christchurchbased merchant and discount grocer since the firm was listed on the stock exchange. Independent of inflation, the directors are confident of further growth, he says. Tighter money supplv and the rapid rate of inflation necessitate the avoidance of over-stocking and keeping costs under tight control. In tight liquidity, food lines do not experience the same fall in sales as some other trades experience, but the problems of obtaining adequate gross and net margins

on sales become more imperative, says Mr Dingwall. “Fortunately, the company is continuing to open new outlets under the Keystore name, and with a wise selection of sites and the ability to accept some of the new opportunities that are occurring there vyill be further expansion, not only in the number of outlets, but in the number of locations in New Zealand.”

The managing-director (Mr M. J. W. Paulger) says that since balance date the company has continued to trade satisfactorily, but future prospects of the economy must be viewed with caution.

“A static population, continuing high inflation, and a business such as ours that has no opportunity to take

advantage of export incentives makes it even more necessary to plan carefully.” Sales rose 12.7 per cent to $34.7M. As reported group net profit rose 34.9 per cent to $401,568 in the year to April 30.

The profit was after providing $1872 less for depreciation, at $34,070, but $176,798 more for tax at $328,555. A recommended annual dividend of 15c a share. (15 per cent) requires $140,250, and is covered 2.9 times by the profit.

Shareholders’ funds rose $721,904 to $2,041,618, including the $935,000 ordinary capital. The return on average funds is 23.9 per cent.