COMPANY AFFAIRS.

Auckland Star, Volume LXVI, Issue 230, 28 September 1935, Page 4

COMPANY AFFAIRS.

DUNLOP, PERDRIAU COMPANY,

SHARP FALL IN NET PROFIT,

The Dunlop, Perdriau Rubber Company, Limited, reports a net profit of £143,016 for the year ended June 30, compared with £287,929 the previous year. With £53,994 brought into the accounts, there is available £197,010. The directors i.ecommend the transfer of £23,000 to taxation reserve, and the payment of the preference dividend of 10 per cent absorbs £93,000, leaving £81,010 to be carried forward. No ordinary dividend is recommended. Last year 5 per cent was paid. The directors state that provision has been made in the accounts of_ the parent company for its proportion of losses sustained by subsidiaries during the year, and the profits of subsidiaries have been included only to the extent of dividends declared for the year ended Juno 30. TL'.y also state that the trading result is much poorer than was expected, and that the cause of the decrease in declared profits and the steps taken to remedy the position will be outlined at the annual meeting. However, the volume of turnover advanced. A complete revaluation of the plant asset of the company has been carried out, and a substantial sum has been written oft". Provision has also been made for idle and obsolescent plant, and nil losses of asset value have been brought to debit. For these purposes revenue and reserves were used.

[ Tn order to establish funds to meet losses of this kind, both in regard to last year and future contingencies, a special reserve for contingencies has been created, and appears in the balance-sheet at £301,794, after debiting to it all amounts written oft' assets value. The reserve was created by transferring to it a balance of £345,004 in the depreciation reserve account, a bonus declared by one of the subsidiary companies, and other items. The accounts include for the first time a statement of the aggregate profits of the company and its share of subsidiaries' profit?—£l63,s46 —and a consolidated statement of assets and liabilities. Year ended J ine 30, 1034. 1935. £ £ Gross profits 802,825 772,403 Net profits 287,929 143,016 Dlv., prcf., 10 p.c. . . 93,000 93,000 Div., ord., p.c 5 — Dlv., ord., amount ... 158.283 — To taxation reserve . — 23,000 Forward 53,094 81,010 WAIRARAPA FARMERS. CAPITAL ADJUSTMENT.

The report of the Wairarapa Farmers' Co-operative Association, Limited, for the year ended July 31 states that after providing against possible bad debts in respect of mortgages and adding £1000 to exchange adjustment reserve, there is a net profit of £7038, against £2768 earned last year. The appropriation account now shows a debit balance of £63,636. To July 31, 1935, there is contingent liability to preference shareholders for dividend in arrears, amounting to £82,500.

The directors state that an adjustment in capital is required. In 1928 the ordinary capital was written down by two-thirds to 6/8 a share, preference capital being retained intact. The ordinary shareholders are to be asked to sanction a ■further reduction of the ordinary capital by £37,201, by writing down ordinary shares to a nominal value of 6d a share. The amount written off is applied to the reduction of the debit balance in the appropriation account, which would then bo reduced to £26,435. It in anticipated that the profits of two or three succeeding years will suffice to liquidate that amount.

Holders of preference shares will be asked (1) to abandon their claims for dividend in arrears, of £82,500, and to forego their rights to further cumulative dividend until the appropriation account is in credit to the extent of at least £7500, being sufficient to pay one year's preference dividend at 3 per cent, and (2) to accept the right thereafter to a cumulative preferential dividend of 3 per cent per annum, with the preferential right in any year to such further dividend, not exceeding 3 per cent, as may be declared from the profits of the company. J. C. WILLIAMSON, LIMITED. !

| INCREASE IN NET PROFIT. | J. C. Williamson, Limited, reports a net [profit of £20.248 for the year ended June 30, compared with £9378 the previous year and £3580 for 1932-33. Dividend at the rate of 0 per cent per annum on 150.000 preference shares for the half-year ended December 31, 1931, has been paid, requiring £4500, and tile directors recommend that the balance, £15.743. be carried forward. The debit of £43.234 at profit and loss as at June 30, 1934, has been extinguished by a transfer from reserves. The elimination of the previous accumulated debit, and the capitalisation of £20.000 of reserves for a bonus issue of 20,000 preference shares were undertaken in pursuance of resolutions passed during the year. The amount voluntarily cancelled by the managing directors and the London representatives, under the reorganisation scheme, in respect of salaries for the period December 1, 1932, to June 30, 1934, was transferred from provisions account to reserve account. The directors report an improvement in business, but state that conditions are still difficult on the theatrical side of the company's activities, owing to the dearth of suitable theatrical attractions from overseas. Land, taxes, income taxes and entertainment taxes applicable to the year under review amounted to £35,243.

N.Z. NEWSPAPERS, LTD. INTERIM DIVIDEND. The directors of New Zealand Newspapers, Ltd., have declared an interim dividend for the half-year ending September 30 of 3 per cent, payable on October 9. This compares with 2% per cent paid in recent years. GUARANTEE CORPORATION. YEAR'S DIVIDEND LOWER. The directors of the New Zealand Guarantee Corporation, Limited, Wellington, propose payment of a final dividend of l%d a share, making 3d a share, or 8 1-3 per cent, for the year. Last year 4(1 a share, or 11 1-9 per cent, was paid. WOOLWORTHS (SYDNEY). SAME INTERIM DIVIDEND. Woolworths, Limited, Sydney, has declared an interim quarterly dividend unchanged of 2 per cent, payable on October 15. AMALGAMATED WIRELESS. FINAL DIVIDEND 6 PER CENT. The Stock Exchange has been advised by Amalgamated Wireless (Australasia) that a final dividend of <5 per cent will be payable' on October 14. JOHN BURNS AND CO. IMPROVED POSITION. Commenting yesterday on the past year's business, at the annual meeting of shareholders of Messrs. John Burns and Co., Ltd., the chairman of directors, Mr. A. M. Ferguson, congratulated the firm on the position disclosed in the balance-sheet. He said the substantial profit declared in the year's trading was not merely a source of pleasure to shareholders, but a welcome indication of a distinct- improvement in business throughout the Dominion. The prospects for the current year were most encouraging.