COMPANY AFFAIRS.

Auckland Star, Volume LVII, Issue 110, 11 May 1926, Page 4

COMPANY AFFAIRS.

LEVER BROTHERS. NO ORDINARY DIVIDEND. LONDON, April 8. Rumour had been busy long- before the meeting yesterday of Lever Brothers, that there would be no dividend on the ordinary shares, and rumour was right. But the report is decidedly more ravourable rrom the shareholders' point or view than market pessimists thought it would be. Writing before the event, Mr. Emll Davies, a financial expert, said that in view of the perturbation amongst the thousands or shareholders, the 'Tact that no reassuring: statement has come rrom the company, combined with the circumstance that Tor about two years past the biggest circularising outside broker has been pushing with the strongest possible recom- ! mendations the junior issues or this great combine (a sure indication to the initiated or the existence or a big seller), lends colour to the rumour." He goes on to say "whether or not the dividend is passed on the ordinary is of minor importance compared with what margin for the other issues is shown by the accounts; ror whilst there are only held, the public holds £54,227,546 or other £2,400,000 or ordinary, all or them privately •shares, ranging rrom the seven per cent preference to 2D per cent preferred ordinary. The megl-omania or the late Lord Leverhulme ha 9 doubtless resulted in Lever Brothers being congested with a large number of businesses tbey had better be without, and the recent sale or the Sanitas' holding is probably an -indication or a clearing up policy. The subsidy of over _ 1,000,000 to the Niger Company, to enable it to resume dividends, is rurther evidence In the same direction. The British Oil Cake report shows that in virtue or the arrangement entered into less than a year agro, that company received rrom Lever Brothers the handsome sum of £3 50,000, whilst Lever Brothers received rrom it only £87,500."

This is not all. He calls attention to the fact that a certain Arm of outside brokers have Tor Quite a long time past been offering 400 shares of their eight per cent preference shares, and apparently have not yet found buyers. in the event dividends are to he paid on seven per cent preference shares, £2,140,----353; on eight per cent "A" preference sares, £1,240,414; or 20 per cent on preferred ordinary shares, £757,462; of 20 per cent on '-A" preferred ordinary shares. £600,000; of 20 per cent on "B" preferred ordinary shares, £81,000; and of eig-ht per cent on preferred ordinary shares, £76,198. There is carried to the reserve fund, £661,342. It is interesting to note that the directors have done something towards getting rid of subsidiary businesses, having been able to sell at a profit the factory in Japan, which was showing a loss, and their Interests in the businesses or Sanitas Co., Ltd., W. Woodward, Ltd., and the Neptune Oil Co., Ltd. (Australia), which the directors did not consider could be operated to the best advantage in conjunction with the principal industry of the company, and its associated companies. Attention is drawn to the fact that the present report and balance-sheet do not mention the subject or co-partnership. Strictly speaking, the payments to copartners have not been dividends, as the certificates held have no capital value. The distributions on them have been fixed on a nxed scale, set out in trust deeds, and rrom the "Stock Exchange Year Book" it maybe round that-On December 10, last, the amounts named on the certificates totalled £2,539,760. As tt is inconceivable that the company has droppei the co-partnership system, without announcing the ract, it must be taken that the payments on the certificates have now been treated as a working expense—which It really is. JOSEPH NATHAN AND CO. At a meeting in London on March 31, or the shareholders of Joseph Nathan and Company, Mr. Alec. iSathan, who presided in the absence in New Zealand or the chairman or directors, stated that the trading profit for the past year was £59,771 against £40,197 last year. The charges against this trading profit Tor the year were .9077, against charges last year of £14,079. The difference was due to a saving in interest ctiarges, these having- totalled -130-.2, ag-ainst the pr?vious year's cost of £5979. Depreciation on operating factories and assets, furniture, etc.. had, as usual, been provided, and amounted to nearly £30.000. The net profit Tor the year was £50,1593, against last year or £3.,177. WHITE STAR LINE. The White Star Line's net pront Tor the past financial year amounted to £319,306, compared with £508.83« for the previous year. The dividend has been reduced from 7* per rent to 5 per cent. The annual report points out that the Australasian snipping atri_ e t__mted __ __& r x loves