D.I.C. expects better result

Press, 8 November 1980, Page 20

D.I.C. expects better result

! PA Dunedin • D.I.C Ltd. is expecting big ; things of its big invtttment : in refurbishing the Lamblon > Quav store. Wellington, > according to the annual report. ; The Lower Hutt location is . another source of hope for , the group’s 1981 results. ! In his review, Mr P. W. \Fels, the chairman, notes .'that after huge structural I alterations. Lambton is . due to be opened on Novemjber IS. ; "It is no secret that we shall be looking for a contribution before lax and head i office charges in the seven- ' figure area on a j early basis .once trading can be resumed 'without interrupation.” Mr Pels says. "That will represent a very significant imfproveihent upon'current returns. I "At Lower Hutt we will ■receive a full year’s return Ifrom our new store, which With its open plan and good ■access can be operated most economically. That store itoo. well return a significant [extra contribution." i Mr Eels notes that trading Iprofit at Lambton Quay was [severely affected oy construction work. Stock was [Written down $335,000. and [ $160,000 Was paid in wages for shifting and cleaning 'stocks while Work was in : progress. [ The two Wellington area stores contributed largely to a doubling of the interest bill,' hut on the bright side the cost of strengthening of the ; Lambton Quay unit has reSuited in a tax-free year for!

L the company and minimal tax liability tn 1981, ’ This helped D.LC to pn> 1 duce a record prolit for dis\tributlort of Sl.ol million for • ’the vear to July 31. However, ■!Mr Pels says that circumstances surrounding the res 'suit ate unlikely tb be rer iptated in the hear future. 1 Extraordinary income 'totalled 5815.107 but ex- ? ’traordlnary expenses reduced 1 this to $241,271. Group sales ‘[rose 28 per cent te 543.4 M and excluding the vontriJhution of new stores at Rotorua. DannOviflte and ■ Napier, the increase was 17 . per cent. u Commenting on the it mi! crease in total dividend to 16c ■ a share tax-free, Mr Pels Ihmts at further uniaxed . sources bv saying, "I • shall ■ hune to he in a position to ’make a further announcement I at the annual meeting." (At i .the beginning of the year a i 'capital profit of s734iO<Xl was I [realised on the old Christtichurch property and there ilwas a modest profit from the ; sale of the old Lower Hutt premises as welt). As pret viously reported, profit before ■ tax was $1,368,738 . ($1,452,023). There was no 1 |4~5 6P) * OF >■ Extraordinary items added >: $241.271 ($5966). Dividends i.totalled $687,531 ($B$5.8lO) (and retained profits w*re . $922,478 ($326.561).. Share- . holders funds to 1514.ai4.153 ($13,852,144), The > .current ratio is 1J57 (1.55): «;the percentage return <sf • shareholders funds is 16.9 1(7.1). —