ISLAND AFFAIRS.

Auckland Star, Volume LXVII, Issue 134, 8 June 1936, Page 4

ISLAND AFFAIRS.

MORRIS, HEDSTROM, LTD. i i- LARGE PROFIT INCREASE. 0 G ! l> DIVIDEND 5 PER CENT. L> . : I A further substantial increase in net U profits is disclosed in the annual accounts U of Morris, Hedstrom, Ltd., for the period 0 ended March 31. The figures show net 3 profit £53,511, and to this is added £40,425 brouglit into the accounts from last year, making a total of £93.937. From 1 this interim dividends have absorbed ' £19.586, leaving £74,350 available for distribution. The directors recommend a filial dividend of 3 per cent on preference shares and of 2% on ordinary, making 6 per cent for the year on the preferences ) and 5 per cent on the ordinaries. > Following is a comparison of the company's results during the past three years: ) 1934. 1935. 1930 £ £ £ Brought forward . 37,627 34.457 40,425 Net profit 30,70S 45,141 53,512 ) 08,425 70,59s !)3,037 j Div„ prof., 0 p.c. . 13.152 13,152 13,152 ) Ord., p.c. ...... 4 5 5 ; Amount 20.51G 2G.021 2G.021 [ Carried forward . . 34,457 40,425 54,704 Chief items in the balance-sheet are: — ( Liabilities: Paid capital, £739,613; sundry , debts, including suspense, £33,011. Re- , serves: General, £80,000; insurance, » £45,080. Assets: —Plantations and buildings, £346,809; plant, £8535; stock, £265,817; 1 branches, £57,233; sundry debtors, 1 £153,183; cash and investments, £140,478: J Total assets £972,054. In his annual report to shareholders the i chairman of directors. Sir Maynard Hedstrom, states, inter alia:— "Owing to _ general improvement in trading conditions the results for the year under review show a substantial improvement over the year ended March 31, 1935. The net profit has increased by £SOOO, and at the same-time substantially greaterprovision has been made for depreciation. "The position continues sound, and the j amount of cash on hand and in the banks is in excess of the total liabilities of the company to outside creditors. During the year the directors considered it advisable to sell the New Zealand Government debentures which appeared amongst assets in the last balance-sheet. ( "The value of merchandise on hand and i in transit and the amount of sundry debtors together show an increase of about I *£40.000 over the figures disclosed in the last balance-sheet. These increases arc normal and the result of improved busi- ! ness conditions. Exchange Position. I "The accounts of the company are kept in Fiji currency. The major portion of the assets of the company is in the Fiji, group, but the company also has considerable investments in Samoa and Tonga. The Fiji £ is lower in value than the Eng- j lisli £. but higher in value than the £ of ! Australia, New Zealand, Samoa and I Tonga. | I "At the end of the ninth year of its I operations the net assets of tile pension fund were valued at £46,556. On the full year the' existing investments would i return slightly over 5.77 per cent, subject to Fiji income tax. "On the whole prices of copra were rather 'better during the twelve months ended March 31, 1936, than during the i ■ period covered by the last balance-sheet. 1 There was also an increase in the quantity ' of copra shipped, which improved general - trading conditions in the copra districts. < "During the past twelve months the 1 company lias erected a new store at 1 Tavua (in the neighbourhood of the gold j ; mining area), and new motor repair shops J at Suva and at Lautoka. ■' Satisfactory Prospects, j "The prospects for the current year ' are satisfactory—good crops of sugar and 1 copra arc assured, and substantial amounts a are being expended in the development of the gold mining areas. Notwithstanding the increased profits the directors have considered it wiser to strengthen the financial position of your company rather than increase the dividend." I C