Waltons losses continue

Press, 27 March 1980, Page 25

Waltons losses continue

NZPA Sydney Waltons, Ltd, a major New South Wales retailer, suffered a . loss of sAust4ss,ooo in the six months to January 31, and has not declared an interim dividend.

After a half profit of $4.5 million in the first half of last year. Waltons reported a loss in the second half of the financial year, resulting in $1.5 million loss for the year to July 31, while under a takeover siege with interests associated with the Sussan group of companies. One director said the latt_; trading losses were minimised by a $l.O million equity share of net profit from Barclays Credit Corporation, which is 50 per cent owned by Waltons. Turnover for the half year rose 5.7 per cent to $175.6 million.

However, gross margins were cut to meet competition, and to clear surplus inventory, which resulted in total retail income remaining static, while costs increased 7 per cent. The company’s management had been strengthened by a number of new board

appointments, and it was moving to dispose of low yielding assets. The company was exploring new expansion opportunities, after recent openings of new larger stores in Gosford. Coffs Harbour and Grafton. Mr Walton said that improved merchandising appeal, and reduced operating costs, would improve results. Taxation fell markedly from $735,000 to $189,000, but the directors said because of trading losses incurred by some companies of the group, Waltons was

unable to take full advantage of tax relief. Waltons sold its Mark Foy’s subsidiary, which had been trading • unprofitably, and suffered a $557,093 loss in the latest six months. Interest payments rose from $2.5 million to $2.9 million, and depreciation charges increased from $1,5 million to $l.BO million. The chairman of Waltbns (Mr J. Walton) said that retail sales during the months of December and January were more buoyant than in the earlier four months, and this trend has continued into the second half-year.