Brother holds costs

Press, 15 July 1980, Page 18

Brother holds costs

The 9.5 per cent increase in net profit by Brother Distributors, Ltd, was achieved in spite of a decrease in turnover of S per cent in the year ended March 31. This was offset by an improvement in gross margins because of the weakening of the yen, says the chairman ■ (Mr A. R. Guth re y) in the i annual report. Overheads increased only marginally because of efforts to reduce selling costs. i The auditors have commented in their report on the company’s failure to dis-| close its sales for the . year, which is a departure from

statement of standard accounting practice No 9, they say. The chairman (Mr A. R. Guthrey) says in his review that sales of knitting machines were disappointing during the year because

“they tend to be regarded, m the present economic conditions, as luxury items?’ But the introduction of ,a new electronic knitter might help correct this position. Sewing machines sold in increasing numbers, and typewriters again improved on 1979 results.

Brother Distributors hopes to diversify further with Brother products during tire coming year, within the limits of import controls, Mr Guthrey says. A small shipment of microwave ovens had already arrived, and the company aimed to develop this market to the fullest extent restrictions allow. A start had also been made on export of lambskin rugs to Japan — with encouraging results.