COMPANY AFFAIRS.

Auckland Star, Volume LXVII, Issue 207, 2 September 1936, Page 4

COMPANY AFFAIRS.

KAIAPOI WOOLLEN

SHARP RISE IN PROFITS,

DIVIDEND RATE INCREASED. (By Telegraph.—Own Correspondent.) CHRISTCHURCH, Tuesday. The directors of the Kaiapoi Woollen Manufacturing Company, Ltd., recommend an ordinary dividend of o per cent, against 3 per cent for the previous year, and a preference dividend of o per cent unchanged. In their report the directors state that improved trading conditions have been experienced during the year, and are reflected in the results which will be placed before the annual meeting ot shareholders 011 September 18. After providing £7000 for depreciation, there is a surplus, including a carry-for-ward from last year of £051, 0f£23,343. Stocks at £226,003 are £ 17.790 lower than last year, and again include an extensive holding of bulk greasy wools. Properties and plant have been fully maintained in first-class order, and further important additions have been made during the year.

The net profit of £22,692 compares with £12.219 in the previous year, and £17,855 ill 1934. Ordinary dividends of 3 per cent were paid last year, and in 1934, but previous to that there had been no distribution since 1930, when 4 per cent was paid. Preference dividends of 5 J-G per cent were paid in 1933 and 1934. Last year £5000 was provided for depreciation. G. J. COLES AND CO. NEW SHARE ISSUE. At the annual meeting of G. J. Coles and Co., held in Melbourne last week, the chairman of directors, Sir. A. W. Coles, made a statement in regard to the new share issue of which brief particulars have already been received by cable. Following the announcement of the proposed increase in the nominal capital from £1,000,000 to £2,000,000 by the creation of 500,000 ordinary and 500,000 preference shares of £1 each, the chairman intimated that it was intended to make an issue of ordinary shares of £1 each to ordinary shareholders in the proportion of one new share for every five ordinary shares held. He added that no decision had been reached by the directors as to a further issue of preference shares, but pointed out that it had been the policy of the company to finance expansion by issues of ordinary capital. The new capital, he said, was needed for new stores. The opening of 13 new stores during the year was a record for the company. The increase in the years profits was not in any way due to the establishment of these new stores; the majority of them were opened in the latter half of the year and made no contribution to the earnings of the company. It was expected that they would earn profits in the coming year. Mr. Coles said the directors proposed to assist an inquiry into the operations of chain stores, -which had been ordered by the Minister of Labour and Industry in New South Wales.

TIPROFT PATENT SEAL.

ANNUAL MEETING HELD

At the annual meeting of shareholders in the Tiproff Patent Seal Company, held yesterday, the chairman of directors, Mr. J. S. Emanuel, gave a resume of his world trip in exploiting the company's patent. He stated that licenses were completed for the manufacture and distribution of the Tiproff seal in all the principal countries of the world, and leading manufacturers and buyers of Crown seals had advised him that it was the most important progress that had been made in Crown seals since they were introduced many years ago. Kecent reports from licensees were very satisfactory, and it was anticipated that the Tiproff seals would be on the markets in America and England and Continental countries in approximately three to four months. Business in Australia was now being established, and ho anticipated during the current year that seals would be sold in all States. All contracts were on a royalty basis.

Shareholders expressed their appreciation of the work carried out by the chairman, and the present board were reelected for the ensuing year. At a subsequent meeting which was held to discuss the question of half-sale of the net returns of the company, the chairman explained the transaction in detail. He informed shareholders that if this deal were finalised the company was only selling half its net returns. It would mean that the parent company would be placed in a very sound position with substantial backing for its share capital and also still very excellent prospects of very large returns. This was fully discussed, and it was decided to adjourn the meeting for a further period, so as to enable the directors to forward to shareholders full details as to the suggested transaction. BROKEN HILL SOUTH. (By Telegraph.—l'ress Association.) WELLINGTON, Tuesday. Broken Ilill South, Ltd., Melbourne, reports a net profit for the year ended June 30 of £486,197. The profit is an increase of £143.687 on the previous year's earnings, and compares with £220,214 shown in 1934. BRITISH TOBACCO: The directors of British Tobacco have declared a quarterly dividend of 2 per cent, this being the final distribution for the year. This brings the year's dividend to 7 per cent, compared with 6 per cent for the preceding twelve mouths.

BARNETT GLASS RUBBER. The Burnett Glass Rubber Company, Ltd., has raised from 4 per cent to 8 per cent the ordinary dividend it is paying to Dunlop-Perdriau as holder of the ordinary capital. The balance-sheet, however, shows that it will be necessary to withdraw £11,160 from past jjrofits to meet the increased distribution. Profits are £3140 higher at £45,536, and after meeting the 8 per cent preference dividends of £16,000, £32,836 of the year's profit remains for ordinary dividend. The payment of an 8 per cent ordinary dividend requires £44,000.