COMPANY AFFAIRS.

Auckland Star, Volume LXVII, Issue 253, 24 October 1936, Page 4

COMPANY AFFAIRS.

NATIONAL INSURANCE. SATISFACTORY OPERATIONS. t DIVIDEND UNCHANGED. I (By Tt'^.'aph.—Special to "Star.") DUNE DIN, Friday. The annual report of the National Insurance Company of New Zealand, Ltd., shows that the net income for the year ended September 30 -amounts to £260.163. After making full provision for losses i outstanding, there is an underwriting surplus of £20,459. Interest and rente, less income tax, amount to £26,957, and with the balance brought forward from last year, £37.521, the amount available is £84,937. An interim dividend of 4d a share was paid in May, which absorbed £10.667, leaving available a balance of £68,270. The directors have added £5000 to the reserve fund, and have written £4900 off the company's premises. They now recommend pavment of a further dividend of 5d a share, making a. total distribution for the year of 9d a share, requiring £37,500, and "to carry forward £37,537. The dividend is unchanged. Following is a comparison of tihe company's results and appropriations for the past three years:— 1934. 1935. 1930. £ £> & Net income .. . 237,030 241,10(5 200,100 Brought for'd . 33,388 30,000 37,321 Surplus 28,008 20,000 20,430 Int. and rents 27,023 27,710 20,037 01,300 84,628 84,037 To reserves .. . 10,000 0,007 0,000 Dividend 37,300 37,300 37,300 Carried forward 30,000 37,321 37,337 The paid capital of the company is : £350,000, in 1,000,000 £1 shares, paid to 7/ each. The reserve fund will be increased to £324,900 by -the present appropriation. MORRIS MOTORS, LIMITED. GREAT EARNING CAPACITY. Quotation on the local Stock Exchange last week of the shares in Morris Motors, Limited, now available to the investing public through Lord Nuffield's sale of part, of his holdings, focuses attention on the great capacity of this company to earn large profits. Hitherto the interest of the public has been confined to the company's £3,000,000 of 7Y2 per cent cumulative preference shares, but 2,000,000 ordinary shares, each of par value of 5/, are now quoted, and an unprecedented demand has met them in London, one firm alone being commissioned to buy over one million shares.

The year ended December 31, 1035, saw Morris Motors' profits restored to the high levels which prevailed from 1027 to 1030. The average total income after depreciation for those years is, according to tlie ''Economist," a few thousand pounds lower than the latest results. Gross profits jumped from £1,044,595 to £1.650,636—58 per cent in one stride. After somewhat lower provision for repairs and increased sundry income the total net income was 104 per cent higher at £1,315,533. The following table analyses the spectacular recovery in earnings during the last three years:— Years to December 31, 1933. 1034. 193 a, £ £ £ Gross profit, including net earnings fro in subsidiaries • . 731.446 1,044,595 1,650,630 Repairs 221,142 336,929 271, 533 Depreci a t i on of property and plant . 100,733 156,698 176,154 Staff funds . . 6,537 6,996 8.280 Net proiit .. . 343,034 543,972 1,194,369 Investment and other income 119,514 99.755 121.164 Total income 462,548 613,757 1,315.533 Pref. dividend 225.000 225,000 225,000 Income tax.. 102,546 90.59S f147,798 Ord. shares (tax free) — Earned 135,002 327,859 942,735 Paid 100.000 200,000 340,350 Earned p.c. 6.S 16.4 41.5 Taid p.c. . 5 10 15 Reserve fund. — 150.000 600.000 Cur. forward. 258.287 236.145 235.531 j t Includes £70.000 transferred to reserve for income tax. SOUTH OTAGO FREEZING. SUCCESSFUL YEAR. (By Telegraph—Press Association.) DUNEDIN, this day. At the annual meeting of the South I Otago Freezing Company to-day a dividend of S per cent was declared, absorbing £5304, and leaving a balance of £16.657 13/1 to be carried forward. The year's proiit amounted to £21,062 1/1, including £12,043 10/11 carried forward from last year. DUNEDIN BREWERY. LOWER INTERIM DIVIDEND. (By Telegraph.—Press Association.) DUNEDIN, Friday. The Dunedin Brewery and Wilson Malt Extract Company, Limited, announces payment of an interim dividend of '2% per cent, payable on November 30. The distribution compares with an interim payment last year of 3 per cent. The dividend for the year amounted to 6V6 per cent. DAVID JONES, LTD. NEW ISSUE OF SHARES. The terms of a new issue of ordinary shares in David Jones, Limited, drapers, Sydney, were announced by the chairman, Mr. Charles Lloyd Jones, at the annual meeting, in Sydney recently. He said the directors proposed to issue 200.000 ordinary shares of £1 at a premium of 10/ each. Ordinary shareholders would have the right to take up one new share for every three held as at January 11 next. The new capital is required to finance the company's building programme. McKENDRICK BROS. FIRST ANNUAL MEETING. The first annual meeting of McKendrick Bros, was held on Thursday. Mr. C. G. | Maeindoe, chairman of directors, in moving the adoption of the annual accounts and report, advocated legislation restricting the importation of second-hand sacks and also to fix standard sizes. Much incon- j venience would be avoided in the business j world, Mr. Maeindoe said, if fixed sizes j could be agreed upon. I The report and balance-sheet, a sum-; mary of which appeared in the "Star" of October 15, were adopted. The directors': recommendation of a dividend of 7% per t cent on ordinary shares and GVs per cent. on preference shares was approved. I

The retiring directors, Messrs. G. G.' Macindoe, R. H. Montgomery and E. H. i Davis, were re-elected. , l HUME PIPE (FAR EAST). The directors of Hume Pipe (Far East). Ltd., have decided to increase the capital of the company by issuing 2.3,000 shares of £1 each. The shares will be offered to shareholders of the company at par in proportion to the shares held. TIPROFF PATENT SEAL. I Shareholders in the Tiproff Patent Seal Company, Limited, Auckland, have received a circular to the effect that it has been decided not to, proceed with the disposal of any of the company's interests.