‘Selby will be able to compete’

Press, 7 May 1983, Page 25

‘Selby will be able to compete’

PA Auckland the Selby Shoe Company, Ltd, believes that it will be able to compete effectively under the recently announced footwear industry study provided it maintains quality standards and sales efforts. ■ The managing director, Mr T. K. Cherry, says in the annual report that considerable efforts have been made since last year to improve quality and efficiency standards. “The results in this area of activity are now showing up in the products available to the Selby customer and the element of stability in our costs,” he said. “We were able to hold our selling prices for the winter range at the same level as the summer range.” Mr Cherry says trading results since balance date are in line with budget and the company believes that it should achieve a profit in the present year to January 31 comparable with that of last year. The company has launched a major advertis-

ing effort based on its 50th anniversary. In addition, he says, a footwear trade fair was held in Auckland in early April. “The results of this extra promotional effort will help sales of New Zealand shoes in competition with imported footwear.” Selby now has three retail stores which, in addition to the normal Selby ranges, it intends to operate with a selection of other footwear brands. The company’s first retail shoe store began operation in Sydney in March last year. Mr Cherry says trading to balance date met expectations, particularly considering the “very difficult economic conditions” in Australia. “When the expected improvement occurs we will be well placed to expand our retail activity in Australia,” says Mr Cherry. In a report on the year to January 31, he says group sales increased by 26.1 per cent (sales levels are not

disclosed). “This has been a difficult trading period for the whole footwear industry and the improvement in sales would appear to be against the general trend,” he said. As reported, trading profits increased by 13.9 per cent to $556,415 and profit after tax was $349,475. A reduced tax provision of $186,940 was because of an increase in exports and export market development expenditure. Production salaries and wages of the group increased from $1.85 million to $1.96 million, an increase of 6.3 per cent. The lower rate of increase in this area reflects the considerable improvements in productivity achieved, he says. The consolidated balance sheet shows shareholders’ funds of $1,976,870 (previously $1,714,057). Current assets rose from $1,514,652 to $1,832,511, with stocks up from $1,225,766 to $1,466,850. Current liabilities dropped from $561,819 to $416,119.