Good profit rise for A. Barnett

Press, 4 March 1982, Page 20

Good profit rise for A. Barnett

The unaudited tax-paid profit of Arthur Barnett, Ltd, Dunedin retailer, for the six months ended February. 1 is estimated at $435,000, the directors announced yesterday. The results, an increase of 21.5 per cent on the same period last year, was after paying 12.4 per cent more for tax at $353,000, they said. Gross income rose 19.1 per cent to 43,685,000, and expenses were held to a 19.6 per cent increase at $2,897,000. Sales during the period improved 21.2 per cent to SII.OM. The sales increase continued from the second half of the last financial year and can be attributed to general buoyant retail conditions together with aggressive trading, the directors said. The effects of inflation were evident in the continuing increase in expenses

which required compensating increases in sales to offset their effect: sales were ahead by $1,913,000. Expenses increased by $474,000 leaving profit after tax $77,000 above, the same period last year at $435,000. This maintains a profit ratio of just under 4c in each dollar of sales for this first half year, they say. In reporting the six months results in the interim report last year the figures covered the period to December 31, whereas this year the comparative figures are for -the six months to February 1, 1981. This is because of the change of balance date to August 1.

The directors have declared an interim dividend of 9 per cent for the year ending August - 1, 1982. This will be on share capital increased by the bonus issue of 1 for 4 in November, 1981. This is equivalent to an in-

terim dividend of 11.25 per cent on the pre-bonus issued capital. The Share Register will close at 5 p.m. on March 25 and reopen on April 7 to enable payment of the interim dividend on April 6. “The results for the half year are estimated figures so far as gross income is concerned as physical.stock take is carried out annually at year end. Although the first six months has been fairly buoyant, the second half of the trading year may possibly see a tightening of credit and some restriction in retail spending. Against that, a programme of aggressive trading should assist us through any such period. “Given the continuation of satisfactory trading, the directors expect that the total dividend for the year ending August 1 will be not less than 18 per cent.”