LOWER PROFITS.

Auckland Star, Volume LXVIII, Issue 201, 25 August 1937, Page 4

LOWER PROFITS.

TAUPO TOTARA TIMBER. HIGHER COSTS AND TAXES. REDUCTION IX YEAR'S DIVIDEND. Considerably lower net profits were oai ne<l during the year ended last April 30 by the Tatipo Totara Timber Company, Limited. Putarnru. The directors state in their annual report that although demand for timber lias continued and sales liave increased over those of tlie previous year, profits have been cut by higher wages, reduced working hours and increased taxation, due to recent legislation. After providing £7435 for taxes and allowing £11,013 for depreciation of railway. machinery and for bush cit n'ir. there remains u net profit of £5553, less than a third of last year's total of £18.002. With the balance brought forward the earnings for the year make a sum of £0548 available after payment of the interim dividend on the preference shares. Out of this it is proposed to pav the usual final preference dividend and 1 per cent for the year on ordinary shares. The directors state that they feel justified in recommending the payment of the dividend upon the ordinary shares, as they believe with the increased turnover due io the installation of Mill No. 3 it should increase the net profit for the year in progress. During the year extensive work has. been carried out in opening up new bushes and extending the main tram line and bush trams. This work is not yet completed and it will be some time ere the full benefit will be obtained from these operations. The ordinary dividend is back to the 1934-35 level of 4 per cent, from which it was raised last year to fi 2-3 per cent. Previous to that was a series of unprofitable years, in which a large debit balance accumulated and no dividends were paid. The company's results over the past years are compared in the following table: — 1934-33. 1933-36. 1936-37. £ £ £ P.rouilit forward — 880 7.312 Net profit .... 15.015 15.902 5.553 £13,015 £19.782 £12.864 Dividends— rt\. 3 3-5 p.e. 6.633 6.633 6.633 Ord 4 6 2-3 4 Amount . . 3.502 5.537 3,302 In% - est. reserve 4.000 — Carried forward £ BSO £7,312 £2.728 The paid capital of the company is unchanged at £206.010. Total liabilities are £200.103. ,against £202.10(5 in the previous year. Fixed assets are shown at £215,774, against £200.633, and floating assets at £74.410. against £83.170. The balance-sheet total is £290,193, against £202.803. A consolidated balance-sheet of the company and its subsidiaries shows fixed assets at £235.961, against £229,820, and floating assets £74,419, against £83,170.