J. Edmond sales rise

Press, 12 July 1980, Page 19

J. Edmond sales rise

' Although the outlook oft. ; the building and construe- 1 , ition industry is no betteri ■than it was a year ago, John I Edmond Holdings. Ltd, has I increased its group sales)' 10.5 per cent in the first two months to May 31 of its j current financial year. I' There had been big price increases, some of 50 per i cent or more, in imported ] lines in the past year, and 1 the cost of goods of local j manufacture had not escaped 1 the ravages of inflation, said t the chairman (Mr P. W. Fels) in the annual report. j “This has had some effect < on the current ratio (down 1 from 2.9 to 2.2 to one), ]

which is. nevertheless, still one which others might envy,” he said. As an indication of the board's confidence. Mr I-els refers to the 1-for-10 bonus issue to be put to the annua) meeting on July 23: “In the absence of any significant downturn in trading the directors hope to recommend an ordinary dividend of no less than 16c a share on the increased capital in future.” i The home improvements market was the reason for! confidence, he said. Specialist home improve-! ment centres are showing satisfactory returns in Dunedin, Oamaru, and Invercargill, and there has been extensive modernisation at Timaru. The group structure has been altered by incor'porating the activities of the

i Alexandra and Queenstown ! ‘roofing subsidiaries. i i It may be possible to wind them up during the year and i the group will then consist iof John Edmond, Ltd, United I Trading Company, Ltd, and | the associated Co., John Edimond (Ashburton), Ltd. An “attractive” conversion offer, together with new debentures, will be made when $317,600 of debenture stock matures on September 30. Details were yet to be settled, he said. As reported, group net profit rose 9.7 per cent to $1,041,788 on net sales 13.5 per cent higher at $lB.B million.

The tax provision rose 1 $116,508 to $854,239, and $13,462 more for deprecia|ition at $89,888. ' : Shareholders’ funds rose ’,(5853,574 to $7,527,086. The _J recommended final dividend Uof 9c a share gives an antnual rate of ]6c a share (16 7: per cent). 15c a share pre-! jviously. The dividend re-, ,1 quires $309,787 and is covJered 3.4 times by' the profit, I /Although commercial busi--iness was better than ex-1 ipected much of the ex-j . panded trade had been from) >jhome improvements. Not ! ’ only that, it had to make up! . for the new housing down-: turn too. he said. Permits for new houses in: Dunedin last year totalled: , 108 compared with 132 the

previous vear and the peak of 241 in 1969.

A contract has been let for a major extension of the bulk building supply store in Invercargill, and at Lumsden the premises of the United Trading Company would be completely rebuilt.

“While this is one of the company’s smaller units the support we enjoy in that area will merit a concrete expression of confidence in the future of that prosperous farming district,” he said.