Three new Countdown markets to open

Press, 13 November 1985, Page 52

Three new Countdown markets to open

Rothmans Industries, Ltd, hopes to have three new Countdown food supermarkets — at Riccarton, Nelson, and Timaru — trading by the end of the financial year, says the managing director, Mr R. H. Matthews, in the annual report. The Countdown supermarkets are part of the Rothmans’ subsidiary, J. Rattray and Son, Ltd, and Mr Matthews says that, mainly because of town planning delays, Countdown supermarket developments at Nelson, Riccarton, Timaru and Oamaru, have been delayed. Since the June 30 balance date, J. Rattray and Son have opened a, new “cash-and-carry” warehouse in Papanui, and other “cash-and-carry” operations are also being expanded. Signifi-

cant sales growth is already being achieved. A big programme to upgrade the 10 existing Countdown supermarkets in the South Island has started, he says. Several leased properties have been bought, particularly in areas where there is significant potential for a rise in property values. An extensive computerisation programme is also under way within the Countdown group. Most supermarkets will soon have computerised check-out systems. In the next year these will also have point-of-sale scanning, Mr Matthews says. The tax provision rose $3,881,000 to $13,323,000 and depreciation rose $1,952,000 to $5,320,000. A recommended final dividend of 6.75 c a share,

which includes the shares arising from the proposed one-for-five bonus issue, increases the annual rate from 11.5 c to 13c a share (26 per cent). The dividend requirement is $5,905,000 and it is covered 4.1 times by the total profit after allowing for preference dividends. Shareholders’ funds rose $27,322,000 to $87,843,000, including ordinary capital up $3,632,000 after the one-for-six cash issue in July, 1984, and a staff share issue. As reported, the total group net profit rose 38.2 per cent to $25,556,000 in the year to June 30, compared with the previous corresponding period. Included in the result were extraordinary profits of $5,745,000 ($2,439,000 previously), which included the sale of several hotels and agricultural land. Equity earnings 1.7 per cent to $890,000. Gross revenue jumped 95.1 per cent to $590,726,000, but excise, import duties and sales taxes rose 47.4 per cent to $173,408,000. Working capital increased $22,341,000 to $48,130,000 and the ratio improved from 1.3 to 1.5 to one.