Shop trading move opposed

Press, 15 August 1980, Page 7

Shop trading move opposed

The prospect of an increase in the weekly trading hours is not a happy omen for the food trade, according to the chairman of Dingwall and Paulger, Ltd (Mr A. A. Dingwall) in the annual report. The chairman of the Christchurch-based grocery and hardware merchant said it was difficult to believe that the population was underfed or not able to purchase all the food it required during existing trading hours. “Associated with an extension in the trading hours are extra costs which could only be met by either a significant increase in sales or an increase in retail margins."

An increase in sales was not expected by all stores, and consumer costs must, therefore, rise if a satisfactory performance by the company was to be maim tained, Mr Dingwall said. The food trade played a unique role in the trading in any community, for it had been more successful than other sectors in retaining its share of each dollar spent. “To maintain this position it must be competitive, and provide the best possible sendee to the customer. If customers are attracted by price alone, they can, in this competitive era, be attracted elsewhere,” Mr Dingwall said.

As reported, the group net

profit rose 26 per cent to $506,135 in the year to April 30, on sales 20.7 per cent higher at $41,968,862. The profit was after providing $85,554 more for tax at $414,109, and $32,309 more for depreciation at $66,379. The recommended annual dividend rate rises from 15c. to 16c a share (16 per cent) and requires $163,705. It is! covered 3.1 times by the profit. Shareholders’ funds rose, $452,518 to $7.6 million, in-j eluding ordinary capital up $88,155 to $1,023,155 after' a share issue was made to the directors and staff during the year. The net asset backing a 100 c share is 244 c.

Working capital rose $1,190,324 to $1,399,667, and the current ratio improved from 1.1 to 1.3 to one.