COMPANY AFFAIRS.

Auckland Star, Volume LXI, Issue 103, 3 May 1930, Page 4

COMPANY AFFAIRS.

COLONIAL SUGAR COMPANY. LESS PROFIT, SAME "DIV." SYDNEY, May 2. The report by the directors of the Colonial Sugar Refining Company for the half year ended March 31, states that the profits amounted to £445,336. The board proposed to pay a dividend of 20/ and a bonus of 5/ a share, absorbing £365,625, and leaving £79,711. The addition of the latter amount to the balance of the profit and loss account at September 30, £410,776, made £490,488, from which the board proposed to place to reserve £100,000, leaving to the credit of the profit and loss account £390,488. Addressing the meeting of shareholders to-day, the chairman, Mr. E. W. Knox, said "the company, like others, was compelled to accept lower profits, but there were investments of this company which fortunately were not affected by fluctuations in the sugar market. He alluded to the increasing difficulty of finding a market for the output of sugar of British tropical countries, including Fiji, owing to the fact that the surplus sugar of other countries is being sold at prices well below the bare cost of production. Nor was it true that the Colonial Sugar Company was making undue profits. They were, in fact, smaller than before the war. Actually more than one-fifth of the company's profits went in taxes. Mr. Knox stated that the new refinery at Perth was just commencing 'work. Its cost has greatly exceeded the original estimate. The directors' report stated there was no evidence of increased world consumption of sugar, while the output next season would probably fall short of that in 1929. Both reports were adopted. Mr. R. L. Faithfull was re-elected a director, and Mr. R. W. Gillespie -was elected 111 place of Sir Norman Kater, who had resigned. Following is a comparison of the company's results and appropriations for the last three half years:— Half-year to March, Sept.. March, 1029. 1929. 1930. Brought forward £369,385 £410,901) £410,776 Net profits 507,149 405,492 445,330 TSTMOI £850,112 To reserve 100,000 100,000 100,000 Dividend, 12J p.c. 365,625 365,625 365,625 Carried forward. £110,009 £410,776 £390,848

DIVIDEND THE SAME. (From Our Own Correspondent.) LONDON, March 27. Despite the unfavourable factors in Australian trade, which were making their appearance in the period covered by the latest accounts of the Bank of Australasia, the profits shown in the accounts for the year to October 14 Inst, were well maintained. _ _ The following summary shows the position:— 1927-S. 1928-9. Gross profit ... £ 1,648,893 £ 1,668,336 Expenses .... 973,701 991,15--Net profit 675,192 677,183 Dividend 595,000 630,000 Bate (tax free) 14 P• < : - To reserve .... 80,000 2,>,000 Forward 139,760 161,043 The directors have not followed the example of some of the other Australian banks which have reduced their dividends, the dividend being again 14 per cent, free of tax. The dividend requires a larger sum, for capital issued in 1928 ranks for the first time for a full year's distribution, and its maintenance may be regarded as an encouraging indication of confidence on the part of the board in the future course of Australian trade. The higher earnings are attributable to the employment of the additional capital. Following are some balance-sheet figures: MID-OCTOBER. 1929. 1928. £ & Deposits, etc 34,414,798 83,876,329 Bills payable, etc. ~ 4,569,795 3,909,217 Cash 7,182,967 7,385,811 Investments ...... 3,681,894 5,082,083 Bills receivable .... 3,362,670 3,307,544 Advances, ctc ..... 34,314,960 31,564,314 Advances show « further substantial increase, and on the date of the balancesheet were virtually equal to the deposit liabilities. This accords with the banking tendencies apparent in Australia last year, and it will probably be found that advances reached a "peak" figure in the later months of 1929.