FACTS FOR INVESTORS.

Auckland Star, Volume LXII, Issue 15, 19 January 1931, Page 4

FACTS FOR INVESTORS.

P. AND O. COMPANY,

DECREASED PKOFJ.TS

After providing for depreciation and debenture interest the Peninsula and Oriental Steam Navigation Company for the year ended September 30 shows a net profit of £745,440, compared with £822,037 for the previous year, and with £120,864 brought down, there was available £800,304. Dividend on the preferred stock at 5 per cent took £152,000, and 10 per cent on deferred stock £459,252. To reserve for redemption o£ debenture stock £90,000 has been transferred, increasing that fund to £1,540,000. A sum of £50,000 has been added to the provident fund and £115,052 is carried forward. In the previous year the distribution on the deferred stock was 12 per cent. Balance-sheet iigures compare as under:— 1925. 1029. 1930. Liabilities— £ £ £ Capital paid . 7,032,518 7,032,518 7,032,518 Debenture stock . 8,487,000 5,457,0(>0 5,487,5G0 Interest accrued 147,000 147,000 142,406 Reserves, etc. . 9,307,538 8,034,761 7,003,025 Bills payable, etc. . 3,287,176 3,823,817 3,028,483 P. and L, 510,100 016,341 420,078 Assets — »learners, etc. . 10,800,374 17,226,421 14,002,399 investments, etc. . 10,031,760 0,302,940 9,051,406 Redemption ' reserves 1,360,000 1,150,000 1,540,000 Freeholds, etc. . 050,452 056,020 1)01,739 Coal ... 229,612 207,707 199,126 The directors state that the year had been dillicult, and in almost all of the company's trades there was a decrease of shipments. As regards Australia financial conditions dominated the situation. ITS PRUDENT POLICY. (From Our Own Correspondent.) LONDON, December 3.

The prospects revealed in the report of the JL\ and O. are none too bright, but the announcement that the deferred dividend vvus to be reduced from 12 to 10 per cent for the year to September i>o last is creditable enough when a company of this kind, engaged in a particularly depressed industry in particularly depressed parts of tfie world, is able to treat its stockholders with such comparative generosity. Of the full report the same can lie said, for the dividend is to all intents and purposes fully earned, after making all necessary provisions, and the only comment possible is that general conditions would have justified a considerably worse showing. As nobody could contend that there is at present any room for expansion iu the shipping industry, beyond normal replacement and improvement work, and as the company seems to be provided with very generous liquid resources, there is clearly no reason whatsoever for not continuing to distribute earnings "up to the hilt." The only cause for dissatisfaction i« the hint in the report that things may possibly be worse in the immediate future, but, with this positive evidence of the company's ability to weather depressions successfully, there seems to be little ground for apprehension. The company is proceeding with an energetic programme of new construction, and the management is evidently not to be deterred by the unsatisfactory conditions prevailing from pursuing its policy of keeping its fleet at the highest pitch of modern efficiency and comfort.

Some of the Vessels. Of special interest to Now Zealand is the note about the Kazmuk sold to the Union S.S. Co. of New Zealand, to replace the Tahiti. The speed and accommodation of the Kazinak make her in every way suitable for the Pacific service.. The Kazinak was originally built for the ferry service between Aden and Bombay, but arrangements now in existence have enabled the company to dispense' with this service.

The Maloja has had considerable additions and improvements made to her passenger accommodation and machinery. The alterations will increase her earning power and reduce her fuel consumption. The Beltana, Berrima and Borda, whidi were run in the brancli line to Australia for a number of years, and were not required under the revised programme, have all been disposed of to be broken up. The outstanding feature of the balancesheet is a reduction of over £2,204,000 in fixed assets, reflecting the transfer of £2,000,000 from the .insurance fund to write down the book value of the fleet. Ah the fund is now freed, except for accidents not involving total loss, the balance of £1,000,000 shuws in clearer relief the strength of the position that has been built up in that important respect.