COMPANY AFFAIRS.

Auckland Star, Volume LXVII, Issue 139, 13 June 1936, Page 13

COMPANY AFFAIRS.

ADVANCE IN PROFITS.

DOMINION BREWERIES,

DIVIDEND OF 6 \ PER CENT.

A sharp advance in profits and the declaration of its first dividend are features of the annual report of Dominion f Breweries, Limited, for the 12 months ; ended March 31. The directors state:— j After providing for income tax and writing off the sum of £5451 for depreciation on buildings, plant, furniture and hotel improvements, and in addition writing off the sum of £2992 for obsolete, brewery 1 plant, net profit is £15,224, to which is . added the balance brought forward from last year £1817, making available for 3 appropriation £17,041. The directors - recommend that this amount shall b:; appropriated as follows: Payment of a dividend for the year of GV2 per cent on a the ordinary shares, £5083; payment of t a dividend at the rate of (>fe per cent per annum on the amount paid up from t time to time on the preference shares to - March 31, 1936, £736; transfer to general - reserve, £10.000; balance to be carried 1 forward, £ 1222. t The retiring directors, Messrs. W. B. 7 Brittain and L. ,T. Stevens, offer themr selves for re-election. l Results in recent years have been as follow: —

Gross profits over the latest period totalled £62,648, reflecting an increased turnover of 40 per cent, as compared with the previous year. Balance-Sheet Items. Chief items in the last two balancesheets compare as follow:— LIABILITIES. 1935. 1936. Paid capital £78,207 £108,519 Creditors 29,978 18,084 Reserved for iuc. tax — 8,000 ASSETS. Land and buildings £11,429 16,177 Plant, machinery & furniture 37,734 47„457 Stock 22,092 33,100 Debtors 11,923 15,706 Hotel leases, etc. . . 4,432 8,204 Goodwill 19,100 19,100 Cash 880 11,800 Total assets .. £110,003 £151,700 The increase in capital is due to the issue recently of 40,000 preference shares of £1 each. A debenture of £25,000 is held by the company's bankers against overdraft requirements, which at March 31, 1935, stood at £18,786. This debit has been replaced by a substantial credit, £11,866. The increase in income from profits and from capital is also reflected in other items, which have varied in accord with expanding turnover and the additional plant requirements. Plant, etc., has increased by £9753, stock by £10,414, and debtors by £3783, leases, etc., by £2025. Good will is unchanged at £19,100, but is partly offset by the provision of £10,000 as a reserve fund. License Law Revision. In a statement supplementing tlie 1 accounts, Mr. H. J. Kelliher, managing ' director of Dominion Breweries, states: — i "The time is opportune, if not overdue, i when the whole of the licensing question , should come up for review and revision. Apparently the policy of former Govern--1 ments has been to restrict and limit ' unduly the number of licenses and at the ! same time permit the establishing of a. ; monopoly over the existing licenses with i the usual objectionable features associated with every kind of monopoly. "When Dominion Breweries commenced business in 1930, this system in the trade 1 had reached a stage where practically 75 per cent of all hotels in the Auckland district had become 'tied' houses. The company had to follow the established practice. It is now in a position where it controls just on 30 hotels, having in most instances purchased long leases, and in some cases the freeholds. The hotels under the company's control are sufficient to absorb the present output of its brewery for at least six or s§ven years. So far the company's operations have been more or less concentrated on the Auckland territory, but there is much scope for further development, particularly in the southern provinces. "Although the position of Dominion Breweries, Limited, has now been consolidated, an early revision of the existing licensing laws is necessary. A system whereby 95 per cent of 'tied' houses are under the control of four or firms must create many undesirable features and cannot be in the best interests either of the brewing industry and the trade or the general public. Brewers are primarily manufacturers and it is not desirable that they should be compelled to participate in the retailing end of the business."

Paid-lip General Net Divi. Mar. 31. Capital. Reserves. Profit, (lend. £ £ £ p.c. 1031 73,274 4,392 4,392 — 1932 77,747 5,430 1,044 — 1933 78,207 — *14,002 — 1934 78,207 — 2,430 — 1935 7S.207 1,817 7,947 — 1930 108,519 11,222 15,224 0J The latest accounts also £8000 as a reserve for income tax.