HIGHER DIVIDEND.

Auckland Star, Volume LXIX, Issue 127, 1 June 1938, Page 4

HIGHER DIVIDEND.

N.Z. PERPETUAL FORESTS. SHAREHOLDERS AND TAXES. A decrease in profits of slight!}- over £5000 is shown in the annual accounts of Xew Zealand Perpetual Forests, Ltd., for the year ended March 31. The profit was £20,812, compared with £26,029 the previous year. The directors have decided to recommend a final dividend of 6Vfe per cent, making, with the interim payment of 4 per, cent, a total of 10V£ per cent for the year. The dividend the previous year was 8 per cent. "Taxation has made' heavy calls on the company and on individual shareholders this year," states the chairman, Mr. W. Eraser, in his report. "To date the company has paid £19,339 in taxation on assessments received during the financial year, and individual shareholders in Xew Zealand have been called upon to pay on an increased basis oi assessment lor the year ended March, 1933, and an unexpected tax in respect of unemployment for the same year. This tax, which is in respect of the bonus units distributed in 1933, has fallen heavily on some shareholders." This extra burden on shareholders is mentioned as a reason for increasing the dividend distribution. The rate of dividend for a considerable period of years prior to this increase has been unchanged at 8 per cent. The interim dividend absorbed £7901, and a sum of £12,839 is required for the final payment. The amount remaining to be carried forward in the accounts to next year is £31,879, being £71 'greater than I the amount brought in from the previous year. The report states, inter alia: "The company's affairs are in that transitional stage which necessarily had to follow the incorporation of the Bondholders' Company, the handing over of the forests to that company, and the negotiations and tentative agreement with respect to compounding. "In December last the company made a preliminary agreement for compounding with X.Z. Forest Products, Limited. It was confidently anticipated that by means of this tentative agreement a comprehensive and conclusive settlement with N.Z. Forest Products, Limited, would be expeditiously effected. Any such agreement, however, is dependent for its efficacy upon the approval of the Bondholders Incorporation Commission—indeed it could have no ultimate validity without that approval. "For one reason and another many delays have occurred to prevent the earlier presentation of the agreement for the consideration of the Commission, and present indications are that some further delay will occur before all the authorities. Go\ ernmental and otherwise, who are now interesting themselves in the matter are more fully informed. It will be appreciated that the preparation of the accounts this year has presented some difficulty, as it would have been necessary to present them upon a completely different basis if compounding had been actually effected. It was found, however. that the balance-sheet had to be prepared on the same basis as heretofore, except that provision had to be made for movements during the six months in respect of assets which will be taken over by N.Z. Forest Products, Limited, should compounding be consummated. This provision has resulted in the suspense account of £67.514 appearing in the balance-sheet. "As shareholders are aware, the forests are now under tlje control of and subject to the management of N.Z. Forest Products. Limited." The paid capital of the company is the same at £197,536.