FACTS FOR INVESTORS.

Auckland Star, Volume LIX, Issue 77, 31 March 1928, Page 4

FACTS FOR INVESTORS.

BANK OF AUSTRALASIA. THE NEW ISSUE. In connection with the proposal of the Bank of Australasia directors to increase capital by issning 100,000 £5 shares at a premium of £6 each it may be pointed out that on the basis of the old shares at £15 5/, cum. dividend and rights, the equivalent value of rights should be £3 9 4. without taking into allowance any difference in dividend value between the new and old issue shares. The following table shows returns which would be obtainable from shares taken up by means of rights at various purchase prices of rights: — Approx. pnrcliase Total cost Return % from price of rights plus brokerage div. of 14%

DOMINION RUBBER CO. REDUCED PROFITS. (l!y Telegraph.—Own Correspondent.) DUNEDIN, Friday. The directors of the Dominion Rubber Company state in their annual report that the profit for the year ended November 30, after provision for income tax, amounted to £5010 1/5. The balance brought forward from the previous year was £2158 11/2. The interim dividend paid last October absorbed £5000, and the directors propose to carry £2168 16/7 to next year's account. The crop for the year, together with the carry-over totalled 358,1631b, and was 58,2311b in excess fo the company's export license. Owing to the continued low price of rubber, the exportable allowance on standard production was reduced from 80 per cent, as at December 1, 1926, to 70 per cent on February 1, 1927, and further to 60 per cent as from May 1, 1927, and remains at that rate. The following table compares profits and dividends in recent years:— Net Profit Dividend Year £ Amount p.e. 1922 32 — — 1 !tL\*J 2,052 — — 1!>24 2,953 5,000 10 1025 20.008 15.000 30 1!)26 10,470 15,000 30 1927 5,010 5,000 10 The company has suffered from the general position of rubber on the world's markets, which is not nearly as satisfactory to the producer as it had been in recent years. The efficacy of the Stevenson scheme is being severely tested by various factors and until April 4, on which date the British Prime Minister has promised to make a statement, it will not be possible to say whether it will continue to operate or if it does, under what conditions.

This company produced very much less rubber last year than in 1926, when the crop totalled 488,1871b. That crop was all marketed with the exception of 11,1871b, the margin in excess of the company's quota. On this occasion the crop is more than 140,0001b less, but even this reduced quantity was 58,2311b greater than the company has been allowed to sell.

PERDRIAU RUBBER CO. The Perdrlau Rubber Company has declared the usual interim dividend of five per cent. This company has made it a practice of paying five per cent interim and 7M per cent final in September, making 12% per cent for the year. ROLLS-ROYCE PROFITS. A substantial recovery in profit has been enjoyed by Rolls-Royce, Ltd. In 1926 a fall in profits from £165,722 earned in 1925 to £ 100,606 was recorded. The dividend was maintained at 8 per cent. In the year to October 31 last net profits totalled £156,878. A bonus of 2 per cent is added to the 8 per cent dividend, while £50,000 is placed to reserve, against only £20,000 last year. The company is in a strong financial position. Its capital totals £813,787, of which £787,176 is in ordinary shares and £26,611 in workers' shares. There are no debentures. Consolidated reserves, with the addition made this year, total £614,276. The assets include £251,542 in cash. No credit is taken for goodwill, which was written off in 1913, whil"e the holding of the company in Rolls-Royce America does not appear in the assets, as the value is at present not determinable. The restoration of the distribution to 10 per cent restores the position as it stood in 1920. The shares are quoted in the market at about 36/, thus offering a yield of about per cent.

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