COMPANY AFFAIRS

Auckland Star, Volume LXVI, Issue 203, 28 August 1935, Page 4

COMPANY AFFAIRS

RENOWN COLLIERIES. GREATLY IMPROVED RESULTS. DIVIDENDS RESUMED. Substantial improvement is disclosed in the annual accounts of Renown Collieries, Ltd., for the year ended July 31. Net profit utter making provision of £3517 for depreciation totals £8014, which compares with £062 last year, when no depreciation was allowed for. It is proposed to pay the preference dividend of 7 per cent, and also a dividend of 3d per share on ordinary shares, absorbing £2550. £3000 is being placed to general reserve, and £1803 to income tax reserve. During the year Mr. Drummond Holderness resigned from the directorate. The retiring directors, Messrs. L. Wilson and J. A. Carr, are nominated for reelection at the annual meeting, to be held on 'September 30. Following are chief items from the latest balance-sheet: — Liabilities.—raid capital, £102.000; accrued wages and sundries. £2838; debentures. £20.500; reserves, £4803. Assets.—Property, buildings, plant and machinery, £88,671; cash, £7476; sundry debtors, " £8805; stocks, £488; stores, £14S1: investments (Waikato Carbonisation shares), £25,616. Comments. This is the first report since the company made its capital adjustment in October last. At that time ordinary shares were written down from £1 to 12/ each, and arrears of cumulative preference shares were written off in order to enable the company to liquidate past losses. At the same time the interest payable on preference shares was \~i> duced from 10 per cent to 7 per cent. The latest results appear to justify the policy of the directors in recommending the radical changes which were given effect to last year. The cessation of the coal war has given the company a chance to enter upon a new stage in its career under favourable circumstances. The balance-sheet is essentially a "clean' one. Trade creditors appear as nil, which means that all current accounts have been promptly liquidated. The success which has attended the effort* of the management in bringing the company's affairs to a profitable condition is instanced in expense items, which appeared in the 1034 accounts as £0657, and in the latest as £4885.