James Smith trading improved

Press, 26 March 1980, Page 18

James Smith trading improved

James Smith, Ltd, h.as reported improved trading results for the six months to January 19. Sales of $14.6M increased 34.8 per cent, including sales from the new Lambton Quay and Lower Hutt branches, and the expanded store in Coastlands.

Tax-paid trading income increased 31.2 per cent to $205,600.

The realised capital profit of $245 236 obtained from the sale of a company property in the corresponding period last year was unusual, and is unlikely to be repeated.

The new Lambton Quay and Lower Hutt branches, to expectations the directors say.

and the expanded store at Coastlands, traded well up The trend of spiralling cause for concern, and the costs continues to give cost of borrowed funds compounds the difficulties the business community faces, they say.

“Every encouragement has quite rightly been given to increasing the volume of exports by manufacturers. They still depend, however, on the capacity of the retail trade to provide the base

I from which their productive I capacity is expected to cater ! for increased export tiali “Therefore, it was extremely disappointing when the Government early this month again declined to revive a stock valuation adjustment scheme or any other fiscal equivalent to relieve pressures on liquidity,” the directors say. Because of the economic situation it is difficult to predict the outcome of the second half of the financial year. Trading indicates- that, in accounting terms, the results for the full trading year will be satisfactory.

; However, assuming a good j r result is available, it will be j - difficult to finance from re-; tained earnings additional - capital expenditure, or ini deed to maintain realistic 3 stock levels, they say. An unchanged interim i dividend of five per cent i (2.5 c a share) will be paid - on May 2. The dividend is ’ again payable from realised; capital profits, and tax-free j : in the hands of shareholders. > Shareholders will receive! ; a greater net return com-! l! pared with last year’s inter-; ,! im dividend as the dividend ■jis to be paid on the in- ; ; creased capital after last : I year’s bonus issue.