BETTER THAN EVER.

Auckland Star, Volume LX, Issue 215, 11 September 1929, Page 4

BETTER THAN EVER.

PUKEMIRO COLLIERIES. IJET PROFIT, £38,365. DIVIDEND 35 PER CENT. Another successful year for that grecit money spinner, Pukemiro Collieries, Ltd. It has not taken long to acquaint the shareholders with the glad tidings that they are again to receive a very handsome return on their investments for the financial year only ended on August 31, and already full details of the financial results are in the hands of shareholders. From these it is seen that the operations for the latest period have again; been highly satisfactory. A net profit ' of £35,305 is shown, which Is more than sufficient to pay the 35 per cent dividend which the directors.again recommend. Despite the proposed payment of a dividend rate that must be the envy even of many prosperous concerns in the Dominion, the company is carrying forward the substantial amount of £53,402, more than half the paid-up capital. In this connection the following comparative figures may be quoted:— Net Dir. Rate. Carried Profits, per cent. Forward. • £ £ 192G 55,400 175 39,924 1927 .... 37,322 30 47,246 1928 37,791 35 50,037 1929 .... 38,365 35 53,402 This is an amazingly fine record, for an investor in 1926 would by now have received the whole of his money back ' in dividends,' with something to the good, and have the satisfying knowledge that 6/8 of every pound he put in was still intact as cash in the bank irrespective of other sound assets. . Balance-sheet Items. The strong financial position of the company is apparent on a glance through • balance-sheet figures. ■To commence ■ with the balance-sheet is absolutely . "clean," for there are no outstanding liabilities. Obviously, there is little need . for thie with £37,000 in the bankj- but : it is a mark of efficiency that outside accounts have all been cleared in time for balancing. The issuance of a balance- • sheet with all the ramifications. of a coal mining business is much more complicated than .many .people imagine, and ten days is little enough time to get , the .sheet out. , The following shows the movements, in the principal assets during the year: — ASSETS. 1928. 1929. ■*/•«■', Mining lease 1,950 1,900 Plant, buildings, machln- . ery. and-branch lines.. 37,770 37,200 ' Anzac Avenue property . 34,500 34,500 Mt. Eden depot 2,559 3,420 Newmarket depot 225 200 Palmerston N. depot ... 2,000 1,950 , N.Z: Govt. war loan ... 50,267 50,267 Office furniture 219 219 Sundry debtors 17,952 19,666 Bank of New Zealand and cash on' hand 30,336 87,333 Totatl assets 180,637 189,402 There are not many changes, and any . shown still further strengthen an ; -already.sound position. Thus the bank ; balance has moved up £7000. iWar loan • investments are still undisturbed at £50,000 odd. Of the coal mine property and plant it need only be said that so ! long as they can continue to provide anything approaching the revenue supplied in xecent years every item must j be easily worth 20/ for everjr £1 shown 0 in the books. Total assets in the year have increased nearly £9000, and at the i present, time, . after, allowing £11,000 set .aside for taxation, show £1 17/8 in hand for. every . £1 of shareiolders? money. -

As an Investment.

"Pukemiros," as they are colloquially designated, were not always aa eagerly sought after as they are to-day, when buyers will go to £3 14/6 and £3 15/ for the. £1 shares. . Time ■ was when they could be bought at 8/ a share, and even after marketing operations commenced they could be. obtained at par and under. They were first listed on the local 'Change in December, 1924, and when brokers came back after their New Year vacation, holders were offering to sell at £2 14/6, and there were no buyers. The company had paid 25 per cent dividend the previous year. The next year 22| per cent was paid. In 1926 it was 17 J per cent plus a bonus of 2/ per share. Market quotations as at September 1-in recent years have been as follows:—l92s, £2 2/; 1926, £2 12/; 1927, £3 2/6; 1928, £3 10/; 1929, £3 14/6. The return to the present investor on Bis outlay is about 9 4-5 per cent. . The year just commencing will add new features to the Pukemiro administration, which is subscribing £25,000 to the new carbonisation company, but those who should be competent to judge look iorward with confidence to the result. ■ : < • '■