COMPANY AFFAIRS.

Auckland Star, Volume LX, Issue 106, 7 May 1929, Page 4

COMPANY AFFAIRS.

BYCROFT, LTD. a' profitable year. dividend plus bonus. The annual report and balance-sheet just issued by Bycroft, Ltd., show that the past year has' been an exceedingly profitable one. The net profits, £10,554, are the highest yet recorded and the directors therefore have decided to recommend that in addition to paying the usual 8 per cent dividend, a bonus issue of one share in ten should be made. The report states that the balance of profit and loss account, £10.553 15/11, represents the result of the year's trading. Added to the carry-over from the previous year there is now available for distribution £13,419 18/9.' Ample provision has been made for the depreciation of buildings, machinery, plant and motors, equal to the sum of £3199. This being in addition to maintaining all these assets in a high stato ofi efficiency. Income tax on the year's profit is fully calculated and is included in sundry creditors account. Stock has been carefully checked and adequately discounted. The directors recommend a dividend of 8 per cent for the year, of which one half was distributed in November last. They further recommend that the balance of 9250 unallotted, shares in the capital account be now issued paid up to £1, by transferring from appropriation account £9250, and that a bonus of snares be allotted to each existing shareholder of one share for each ten now held in the company. The annual meeting of shareholders will be held on Wednesday, 15th May. Mr. G. R. Hutchinson, director, retires in terms of the articles of association and has been nominated for a further term. Net Profits. The following is a comparison of the net profits obtained during the past six years:— Year. Net Profit. 1924 ♦■ £6952 1925 £0481 192G £0462 1927 £9018 192S £10,25G 1029 £10,554 The balance-sheet' shows paid-up capital, £90,750; sundry creditors and income tax appropriation total £33,163. Chief asests are: Land, £12,500; buildings, £42,570; machinery and plant, £21,518; sundry debtors, £42,377; stock, £30,981; bank, £3572.

DONAGHY'S ROPE AND TWINE.

COLONIAL SUGAR CO.

THE CHAIRMAN'S REVIEW.

WORLD MARKET DEPRESSED. Had the Colonial Sugar Company had to face world competition on ordinary terms instead of amassing record profits during the past half-year, ita operations would have resulted in a substantial Joss. However, the bounty system permitted by the Commonwealth Government, together with the preferential duties allowed in Canada and Great Britain, saved the situation for the company and its shareholders. Speaking at the half-yearly meeting in Sydney last chairman of directors, Mr. E. W. Knox, said, inter alia: — "Great depression has been caused in the world's market for sugar by the increasing production, so since the close of our accounts twelve months ago, the price of raw sugar has fallen to the extent of £4 10/ a ton, approximately 50 per cent of the present value of Cuban sugar, c.i.f., in the United Kingdom, but as things stand in Australia the drop in price only affects us in regard to the surplus exported to Britain and Canada. It is worth noting ( that, at the lowtfst point, Cuba raw sugar was sold f.o.b. to Europe at two-thirds of the present price of flour in Britain, or at about the equivalent of the f.o.b. cost per ton of wheat here. Of course, this state of things cannot continue, but when and how relief will come would be at present only conjecture. "The position in regard to the past crop in Fiji was saved by the preferential duty in Canada and in Great Britain. Had the produce of our mills been forced into other than preferential markets we would not have recovered its cash cost, for the wages we pay there are twice or thrice as high as those ruling in Java, and our expenses are swelled seriously by the very high Customs duties on the material and plant which we must import, and by an income tax very much out of place in a tropical colony, where all the capital is introduced from elsewhere/'

PROFIT OVER £9000. — The directors of Donaghy's Rope and Twine Company report a net profit of £0019 10/3, to which has to be added last year's carry of £2894 2/8, lees interim dividend of 9d per share, paid October, 1928, £1762 10/; £1131 12/8. This leaves available for distribution £10 y 151 2/11. The directors recommend the following appropriations: Final dividend of 1/3 iper share, making with the interim dividend of 9d per share previously declared a<nd paid, 10 per cent for the year, £2937 10/; place to dividend equalisation reserve account (making it £5000), £2500; place to Aiickland rebuilding account, £2000; carry froward, £2713 12/11. The sum of £1813 1/2 has been written off land, buildings and plant.

BURNS, PHfLP AND CO.

INCREASE IN PROFITS. Net profits of Burns, Philp a<nd Company, Limited, for the year ended March 30 were £229,657, as against £221,612 the previous year.. The dividend ie unchanged at 10 per cent, including interim, dividend. The half-yearly distribution was paid for the first time last year. With £75,000 transferred .to reserve.fund that fund ae increased to £725,000. There is carried forward £24,743, against £20,086 brought into the account. The profit and loss account shows that grose profits increased by £29,589, working expenses by £13,323, and the amount allowed for depreciation by £8220. The report states that (merchandise operations were more than maintained during the year, but unfortunately the improvement gained under this heading was counterbalanced to some extent by continued "shrinkage in shipping earnings between Australia and the Islands, and in commissions ia shipping agencies held by the company. It is proposed to improve further the company's Eastern and Island .services by the ibuilding of one or more new and modern _ vessels. Plane are in course of preparation.

MILLING TESTS.

WHEAT INSTITUTE'S WORK.

The Wheat Research Institute in Montreal Street, Christchurch, has now started work in ; earnest, and the flourmilhng plant has been in operation for some days. This week the small electric ovens should be ready for baking,' according to the "Press " The'institute has/ plenty of samples to work on, 600 milling' samples and 1600 group test samples. These are taken from all types of country, and the history of the grain after cutting is fully known, and also the fertiliser used, so that valuable results should be obtainable. The wheat will also be tested for itsjjroteui content,. . .