Ebos expects better year

Press, 20 April 1979, Page 12

Ebos expects better year

The recent acquisition of three substantial agencies from overseas principals by Ebos Dental and Surgical Supplies, Ltd, is expected to make a good contribution to profits in the 1979'financial year and into the future, says the chairman (Mr J. R. Maddren) in the annual report. The directors are budgeting for a more satisfactory return on shareholders’ funds, he says.

The result in the latest year was affected by the loss of the stock-valuation adjustment for tax purposes and a loss of $12,702 on the remainder of the share portfolio.

“Sales, at $4.5M, showed a heartening increase of 13.3 per cent on last year, but largely because of inflationary pressures expenses continued the rising trend experienced in recent years and rose $162,000 on 1977.”

As reported, group net profit fell 23 per cent to $133,941 in the year to December 31.

The profit was after providing $12,483 more for depreciation at $60,386. and $23,434 more for tax at $101,921. A final dividend of 3.75 c a share is recommended, making a steady 6.25 c a share (12.5 per cent) for the year. The dividend requires $68,401 and is covered 1.9

times after allowing for the preference dividend.

Shareholders’ funds rose $65,034 to $1,619,946, including steady ordinary capital Of $547,193, steady capital reserves at $344,678, and $65,034 higher revenue reserves at $720,075. The earning rate on the funds fell from 11.2 per cent to 8.3 per cent. Working capital fell $140,289 to $1,141,746 and the current ratio fell from 4.3 to 2.2 to one. • The main reason for the fall in working capital and the current ratio was an increase in the secured bank overdraft from $71,340 to $333,737 and $201,600 of secured debentures is repayable. The shares last sold for 87c for a dividend yield of 7.2 per cent, and an earnings yield of 13.7 per cent. The price-earnings ratio was 7.3, and the net asset backing a 50c ordinary share was 147 c.