Smiths CM profit and turnover up

Press, 26 December 1985, Page 15

Smiths CM profit and turnover up

Smiths City Market, Ltd, has increased its unaudited group net profit 5.4 per cent to 51,783,734 in the six months to October 31, on a record turnover.

The directors say that while the profit increase might appear modest, the first half of last year was characterised by quite extraordinary trading, which produced a record result.

Trading is now being slightly adversely affected by uncertainties associated with the economy and industry, and consumers’ perception of the likely impact of the goods and services tax (GST), which will be introduced next year, they say.

But the directors say they are confident about the medium and long-term prospects, which has been

reinforced by the recent tariff reductions. The reductions have been costly to the group in the short term, but they should increase the popularity of many products within the stores’ traditional ranges. Efforts were continuing to expand the group’s retail coverage of the country, in addition to the recently announced merger with the HWB Company, Ltd, and more stores are being planned for opening in 1986, the directors say. The turnover was ahead 19.5 per cent to $55,411,184. The net profit, before equity earnings and extraordinary items, was marginally down by $375 to $1,778,576. A steady interim dividend of 7.5 per cent (1.5 c a 20c share) has been declared, payable on February 12.