Brother may change name

Press, 28 July 1987, Page 26

Brother may change name

The directors of Brother Holdings, Ltd, are considering changing the company’s name, the annual report shows. The chairman, Mr lan Farrant, said that the activities of Brother Holdings had expanded well beyond the distribution of Brother products. The company was originally known as Brother Distributors, Ltd, but last year the company’s name was changed to Brother Holdings, when the company’s 'activities spread from distribution to Investment The earnings ability of Brother Distributors, the subsidiary company, and the likely profitability of H. E. Perry, Ltd, the photographic equipment importing and wholesaling subsidiary, provided Brother Holdings with a strong earnings base for pursuing medium term investments, he said. The directors perceived there were sound opportunities to provide capital and commercial expertise to private family businesses and under capitalised firms. Although investment would not be restricted to the South Island, Brother Holdings represented a vehicle for retaining business in the island.

The performance of Brother Distributors had improved significantly last year, and indications suggested further improvement in the medium term, Mr Farrant said. As reported, the group net profit was $428,013 in the year to March 31, compared with a loss of $280,358 in the previous corresponding period. The result was achieved on sales 20.1 per cent ahead at $12.4 million. v The profit was after providing $234,839 for tax (nil previously), and $13,099 more for depreciation at $78,976. A final dividend of 3c a share increases the annual rate from 2.5 c to 5.5 c a share (11 per cent). Only an interim dividend was paid in the previous period, after the company incurred a loss In the 12 months. The dividend requirement is $210,212, and it is covered 2.0 times by the profit Shareholders’ funds improved $358,916 to $2,004,960, including ordinary capital up $955,517 to $1,501,517 after a three-for-two bonus issue and a one-for-one cash issue. Working capital fell $200,730 to $871,740, and the current ratio was steady at 1.2 to one.