FTC feels pinch on interest

Press, 2 July 1985, Page 26

FTC feels pinch on interest

PA Auckland The March year accounts of Farmers Trading Company, Ltd, reflect the higher interest charges. Interest on fixed loans was up a marginal $193,000 to $5,795,000, but the amount required for other interest was up from $986,000 to $3,804,000. As reported, tax-paid profit was up 14.25 per cent at $18,887,000. The chief executive, Mr P. T. Healey, said the company expected interest rates to fall to more reasonable levels. Thus a decision to defer increasing interest charges to customers meant these costs were not passed on immediately. However, the company was able to maintain the profit to sales figure at 4.85 per cent, compared with 4.89 in the previous year. Mr Healey said the planned store of the future with its related financial services is not a promotional idea for FTC but a “merchandising concept more advanced than any yet seen in New Zealand.” Details of the location of the first such store will be announced later. FTC sees expansion opportunities in addition to the ones already developed and put into practice, says Mr Healey. “We have created a prototype store that is suited to the smaller communities in New Zealand.” The present financial year so far had been “very encouraging,” but the company was concerned at high interest rates. The new Farmers Trading Company subsidiary, FTC Finance, Ltd, and the Farmers Trading joint venture, Farmers Credit Corporation, Ltd, have begun operation since the March 31 balance date. The FTC current assets are up from $167.6 million at $197.1 million and current liabilities from $81.5 million to $196.8 million.