COMPANY AFFAIRS

Auckland Star, Volume LXVII, Issue 181, 1 August 1936, Page 4

COMPANY AFFAIRS

COMMERCIAL BANK OF SYDNEY. INCREASE IN PROFITS. SYDNEY, July 31. The Commercial Banking Company of Sydney reports a profit of £298,227 for the year ended June 30, against £203,937 earned in 1935. The year's dividend is 6 per cent, an increase of 1 per cent. The net profit is the highest recorded since £441,815 was earned in 1931. In that year HVs per cent was paid, followed by 5% per cent in 1932 and 5 per cent in the following three years. PROCERA BREAD CO. SALE OF RIGHTS. (By Telegraph.—Press Association.) WELLINGTON, this day. Protracted negotiations in connection with tile disposal by Procera Bread Process (N.Z.), Ltd., of the international rights in its process have been completed on Very satisfactory terms, states a circular issued to the shareholders. Full details of the agreement reached have yet to be received. Cable messages indicate that a new company with a capital of £3000 is being formed to market the international rights. Procera Bread Process (N.Z.), Ltd., receives 1.500 fully-paid shares of £1 each in the new company and £2000 in cash. The remaining 1500 shares arc being purchased by an English company for £5000 sterling. A large and important financial group in Great Britain is purchasing 10,000 shares in an English company, named Procera Products, Ltd., for £10,000 sterling. Five thousand of these shares belong to the New Zealand company, which with the £2000 'mentioned above will receive altogether in cash £7000 sterling.

The Procera Bread Process (N.Z.), Ltd., has a capital of £25.000, and was registered in 1933 to acquire an interest in a process for the manufacture of a special kind of bread.

REDUCTION OF CAPITAL. N.W. WOOLPACK AND TEXTILES. Mr. A. W. Press, chairman of New Zealand Woolpack and Textiles, Ltd., Foxton, in moving a resolution regarding reduction in capital, said at a special meeting in Wellington that progress was being made at the mill in the improved method of pre-treatment of fibre intended for spinning and that the out-turn of yarn on one day of last week constituted a record. The steps shareholders were asked to take in ridding the company of its accumulated losses and unsupported balance-sheet assets represented a milestone in the rehabilitation of flax-growing as an national industry. The programme of the Government, already in active operation, of planting suitable areas with selected flax plants, and the assistance given to the factory works, proved the basis for the establishment of a flax industry which would be more profitable than it liad been for the last decade. The nominal value of the shares is being written down from £1 to 5/. WELLINGTON INVESTMENT. The accounts of the Wellington Investment, Trustee and Agency Company, Ltd., for tho year ended June 30, show a net profit of £3176, compared with £2932 earned in the previous year, and £3482 in 1934.

The directors recommend a final divi- | deiul of 3 per cent, making 5 per cent for [ the year, compared with 4% per cent Inst year. This will absorb £1860, leaving £2350 to be carried forward, against | £2274 brought forward. TAUPO TOTARA CO. In submitting their annual report and statement of accounts for the period ended April 30, the directors of the Taupo Totara Timber Company report that profitable trading conditions have continued in the timber industry. After making provision for income tax and allowing the sum of £10,083 for depreciation of railway, machinery, buildings, and for bush cut out, the result of the year from trading, together with interest from investments, is a net profit of £ 18,902. To this is added the amount brought forward from last year, £880, making a credit of £19,782. The directors now recommend payment of a dividend for the year upon the preference shares of 7 per cent, less statutory reduction of 20 per cent, £0034, and 8d per share on ordinary shares, £5837, and that the balance of £7311 be carried forward. The report states that recent legislation has greatly increased the cost of production, at the same time controlling the | selling price, and adds: — " ! "At the moment it is not possible to I estimate exactly the effect this legislation ! is going to have upon our business. We ! are, however, assured that the rise in sell- i ing prices permitted will not compensate I us for the extra cost of production." The retiring directors, Messrs. R. A. j Wilson and H. M. Coupe, are nominated for re-election at the annual meeting on August 11. Chief items on the balance-sheet are:— Liabilities: Paid capital, £206.010; mortgage, £20,000; reserves for replacements, ' taxes and investment fluctuations, etc £66,180. Assets: Properties, mill, plant' etc., £229,820; stocks, £28,257; debtors' £17.049; investments, £34,521: each' £2615. '; Net profits in recent years have been-—' 1934, £6971; 1935, £15.015; 1936, £18,902 1 In 1933 a loss of £5145 was disclosed. Last year's dividend on ordinary shares was 4 per cent, compared with 6 2-3 per cent fo- the latest term.