Steady profit for Quill Humphreys

Press, 26 February 1986, Page 33

Steady profit for Quill Humphreys

The interim after-tax profit of Quill Humphreys, Ltd, Christchurch-based liquor distributor, edged up from $665,000 to $668,000 in the six months ended December 31. There were no extraordinaries, and the provision for taxation was $3OOO higher at $547,000. Turnover declined 11.1 per cent to $22,500,000, the directors announced yesterday. Despite the reduction in sales, a change in the mix enabled the company to maintain profitability, they said. “Although total spirit sales in New Zealand during the first half of the year were down, the company’s major agency lines have held their positions as brand leaders.”

The first half of the financial year had been a difficult trading period, the directors said, “affected by the decline in customer spending, heavy discounting of New Zealand wines, and the very high costs of borrowing.” Under these trading conditions the directors were very pleased with the reported profit.

“The Auckland licence became fully operative in October and, although it made little contribution to the half-yearly result, it is expected to become a major profit earner during the next six months.” Quill Humphreys has purchased the Kensington tavern in Dunedin, and will take possession in April. This will give the group representation in

the lower South Island, and is budgeted to produce a satisfactory return. “Although reluctant to forecast profits,” the directors are encouraged by early sales results for the second half of the year, which show that budgeted targets have been achieved, “continued efforts to improve sales through all Quill’s trading units should enable the company to meet budgeted profits,” they say. An unchanged interim dividend of 3.5 c a share (7 per cent) will be paid on March 11, ex dividend March 6.