Taylors looking to profit growth

Press, 4 August 1987, Page 41

Taylors looking to profit growth

The outlook for Taylors Group, Ltd, is good, and "we are able to look forward to a continued growth in earnings,” said Mr J. S. Taylor in his chairman’s review with the annual accounts for the year ended March 31. During the year the company expanded by acquisition and now operates 16 factories throughout the country. Nine of these are in the South Island and seven in the North. Turnover for the current year will be derived equally from the two areas. Each of the 16 plants comprises modern efficient plant and is complemented by a fleet of late model service vehicles. In February the group purchased the linen hire and drycleaning operations of Hylin Holdings, Ltd, in Auckland and Wellington. This has increased the size of operations in Auckland and gives the company representation in Wellington. It now operates in Auckland, Wellington and Christchurch, together with the tourist areas of the South Island, Mr Taylor said. “Taylors services the hospitality industry with linen hire and there has

s been additional growth in I this area. Rental of industrial garments has been I phased out, although the I company is involved in j the cleaning of uniforms i through its drycleaning r factories. “The drycleaning facj tories operated by the company continued to do - well. The main activity here is in Christchurch, f Fosters Drycleaning, in i Wellington was purchased » as part of the Hylin acquij sition. "Our holding in Henry j Berry, Ltd, was sold dur5 ing the year. Although this i holding has been part of our long term portfolio we f accepted the offer from ; Ceramco, Ltd, as they sought a full take-over of > the company. The disj posal of the shares in Henry Berry did not im- , pact the results this finan1 cial year. “Growth for the company is in the linen hire 1 operations, and Taylors is well placed to support the t expanding hospitality in- , dustry. Our specialist linen hire factories are j efficient by international i standards and we are proud of the service we i provide. i “During the year we s completed the joint ven-

ture development of a commercial office building in Manukau Road. Since balance date the whole property has been acquired by Taylors for our long term property portfolio. Two industrial buildings in Avondale were acquired from Hylin. These buildings have been upgraded and will also become part of this portfolio. “The company property investment will be expanded as suitable opportunities arise,” he says. As previously announced, the group had a good year — recording a growth in tax-paid profit of 45 per cent. Sales for the year were ahead of last year by 20 per cent for a total of $12.8M and shareholders’ funds increased 26 per cent to $8,702,956. A final dividend of 7.5 c a 50c share is proposed by directors. Total dividend payout for the year on this basis is $440,816 or 30 per cent of tax paid profits compared with a payout of $325,000 last year. Shareholders are again invited to reinvest in the company by accepting shares in lieu of dividend.