COMPANY AFFAIRS.

Auckland Star, Volume LXV, Issue 5, 6 January 1934, Page 4

COMPANY AFFAIRS.

CONDITIONS IMPROVING.

ANALYSIS OF FINANCES.

A resume of prominent companies well known iu New Zealand and Australia is given in the latest publication of ''Jobson s Investment Digest." Some of the companies arc: — Tooth ar.d Co., Ltd. I In the appended tabic the position of the past two years is disclosed. Figures' for 1930 and 1031, in their order, are:—! Gross profit, £1,593,797, £1,260,615; net J profit, £080,392, £480,829: percentage of j gross profit to net profit, 43.1, 38.1; dividend, percentage and amount respectively, 11% per cent, S per cent, £632,317, £449,648; to reserves, £54,075, £24,151*; reserves, £889,086, £913,268. I

*£7000. £9000 and £"000 passed to employees' benefit fund. I The improvement of £14,731 in the net profits to £182,201 was entirely due to reduced management expenses, which, including taxation, were £28,095 less at £596,777, entirely offsetting the drop of £13,3W in the gross trading profit to £1,0(8,981. The ratio of net to gross 44.6 percent, showed a further improvement, btill, the improvement in the trading result did not in itself justify the increase in the dividend rate from 8 to 8% per cent. After transferring £7000 to the employees benefit fund (£9OOO in 1932) the dividend, at tbe increased rate, necessitated drawing on the reserves for £2547, which are thereby reduced to £919,546. The already strong financial position has been further strengthened during the year. Notwithstanding the payment of £449,648 in dividends and the addition of £14,.348 net to the main asset, the surplus of liquid assets over liabilities has risen by £81,10b to £1,560,148. Stocks, however, have dropped by £71,898 to £164,087. The outlook for the current year is distinctly brighter. The reductions in the excise duties on beer and spirituous liquors with the remissions of taxation, particularly land tax, and the lower freight rates should be of material benefit. The shares accordingly appear to be fairly priced at 42/9; though tbe return of £3 19/6 per cent is low; but it may, with reasonable assurance, be considered as a minimum. Dividends paid in 1933, May, 4 per cent; November, iVz per cent.

•OSS? J&g *g£> Net profit i"f r I'.c. to gross profit .. 4'J.S 44.J> Dividend, per cent ... X °t Dividend, .amount ... 449,648 4<7,iol To reserves S.S-;' Jv.r.'SlA Keserves 92_>,0J.> ,U9,o4t>