COMPANY AFFAIRS.

Auckland Star, Volume LXVII, Issue 104, 4 May 1936, Page 4

COMPANY AFFAIRS.

N.Z. NEWSPAPERS, LTD. YEAR'S INCREASED PROFITS. DIVIDEND SIX PER CENT. PROPOSED CAPITAL REDUCTION. Accounts of New Zealand Newspapers, Limited, for the twelve months eydeil March 31, show net profits at .£47.695, which compares with £39,880 recorded the previous year. The balance brought into the accounts from 1935 after payment of final dividend was £26,478. An interim dividend at the r<ite of 6 per cent per annum was paid in October, 1935, absorbing £17,925, leaving a balance available of £56,248. From this the directors recommend payment of a further dividend, making 6 per cent for the year, leaving the . amount to be carried forward at £38,323. Comparison of Results. The following table contains items taken from the profit and loss accounts since the establishment of the company:—Dividend f Net profits. Dividend Payment. Year. C Kate. t 1930 ii 1.710 7 -40,775 io:n .... 40.500 c> :s4.'.ir>o 1932 .... 34,[tost 0 -9.125 15)83 .... 31.007 5 29,125 1934 38.723 5 29,125 193."; 39.580 5 29,125 1930 .... 47,695 6 36,800 The profit and loss account shows gross profits at £100,697, as compared with £72.901 the previous year.

In their report, the directors state, inter alia:—

, "As a consequence of the sale of one of the company's daily papers in,Christehurch, the directors consider that the present capital is in excess of the company's requirements, and that a reduction of the capital is desirable. Resolutions, with the object of effecting this and refunding to the shareholders throe shillings and fourpence per share, will be placed before the meeting.

"The directors consider that it is desirable to amend the company's memorandum and Articles* of Association in order to facilitate dealings with the company's undertakings, -and appropriate resolutions for amendment of the memorandum and Articles of Association will be submitted to the shareholders." During the year Mr. A. T. Donnelly was appointed a director. The retiring directors, Messrs. C. H. Hewlett and W. Goodfellow, offer themselves for re-election at the annual meeting, to be held on May 27. Balance-sheet Items. Following are the principal items taken from the company's last two balancesheets:— LIABILITIES. 1035. 1030. £ £ Paid capital 582,500 507,500 Reserve 55,000 55,000 Sundry liabilities, including taxation reserve 24,008 . 41,801 ASSETS. Land and buildings .. 100,200 100,047 Machinery and plant . 127,070 130,380 Stock 40,048 00,081 Copyright, etc ...... 120,000 120,000 Sundry debtors 40.054 44,378 Investments 174,100 217,008 Cash 20,020 11,010 Total assets 703,408 700,000 CAPITAL PROPOSALS. RETURN OF 3/4 PER SHARE. ' Accompanying the report and balancesheet is a circular containing the proposals of the directors in regard to capital adjustments. The resolution to be submitted to shareholders reads:—

"That the capital of the company be reduced from £1,000,000 divided into 1.000,000 shares of £1 each, to £700,000 divided into 840,000 shares of 16/8 each, and that such reduction be effected by returning to the holders of the 597,500 paid-up shares, paid-up capital to the extent of 3/4 per share and by reducing the nominal amount of the said shares from £1 to 16/8 each, and by cancelling 160,000 shares of £1 each which have not been taken or agreed to be taken by any person." Slight alterations to the memorandum of association and to the articles of association are also proposed.