Steady result by R. W. Saunders

Press, 21 April 1982, Page 23

Steady result by R. W. Saunders

R. W. Saunders, Ltd, the Christchurch-based apparel manufacturer, increased its group net profit $3741, or 1.5 per cent, to $248,420 in the six months to January 19, compared with the previous corresponding period, said the chairman, Mr W. A. Hadlee in a half-yearly port.--Although sales for the six months were 13 per cent ahead of the same period last year, the pre-tax profit was slightly lower at $483,354 (5.5. per cent down). The final result was after providing $11,259 less for tax at $188,934, and $20,750 less for horticultural development costs for the North Auckland kiwifruit farm 'at $46,000. These costs are tax deductible from the pre-tax result.

In spite of a strong opening to the summer season’s trading, unseasonable weather during October and November did not allow this trend to continue, Mr Hadlee said.

This brought about a disappointing result from the clothing activities, but current trading was in line with budgets, and the result for the full year should be satisfactory. The excellent trading period in . December and January had assisted retailers in clearing stocks and this was reflected in the

buoyant indenting in the summer 1982 ranges. An agreement had been reached for R. W. Saunders to make and sell “Rumpus,” an Australian girls outerwear range, in New Zealand.

“Orders on our first range for summer 1982 reflect ready acceptance of this merchandise and these orders will enable us to increase production in our Auckland factories,” Mr Hadlee said.

Steady progress was being made in exports. The Canadian market continued to be encouraging and the progress in Australia and the United States was good. “Export sales should more than double during the next 12 months.”

The horticultural partnership with Mr and Mrs T. J. McLean, at Matakana, North Auckland, was progressing well, he said.

The growth rates for shelter, vines, and trees were excellent and the market outlook for kiwifruit remained strong.

“Shareholders were informed in the annual report that an additional 40ha of land had been purchased for development. Shelter will be planted over the entire block, but whether we allocate resources to crop the total area is yet to be determined,” Mr Hadlee said. A steady interim dividend of 10c a share (10 per cent) is payable on May 12, and ex dividend on May 5. The dividend requirement is $70,024, and it is covered 3.5 times by the profit.