DEVONPORT STEAM.

Auckland Star, Volume LXIX, Issue 128, 2 June 1938, Page 4

DEVONPORT STEAM.

INCREASE IN PROFITS.

SUBSTANTIAL RESERVE FUND. DIVIDEND UNCHANGED AT 5 P.C. A substantial strengthening of its general position, an increase in profits and a maintenance of the regular dividend rate of o per cent are the chief features of the Devonport Steam Ferry Company's accounted l'ur the year ended April 30. In submitting their 43rd annual report tin l directors state that net profit after making allowance for depreciation on steamers, plaiit, etc., and payment of directois' fees, amounts to £19,939. This sum. together with a balance of .€'2343 brought forward, and an amount received upon a mortgage written off of rt." 200, gives a total of £22.482. An interim dividend absorbed £37.~>0. and an allocation for income tax. writing down shares and plant replacement. £ 12.660, leaves an available balance of £6062. A final dividend of 21i per cent is recommended, reqiiirinsr £37f>0. leaving a balance of t'2312 to be carried forward to next year's accounts. Past Years Compared. The following table shows the results of the company's operations during the past ten years: —

[Since 1!».">4 the accounts have boon compiled in different form tn comply with iimdirions of tlio Companies Act. anil writing oft or assets, apart from ordinary (lo)irociation. has licon made after net profits have boon declared.] Tn addition to general reserves, which include the carry-forward, there are special reserves for steamer insurance, accident insurance and boiler renewals totalling £ 10.150. This year a new item has been added in the form of a replacement account, with a credit of £2000. Balance-sheet Items. The following table shows the principal movements in balance-sheet items over the past two years: — LIABILITIES.

Fine Summer Helps. Reviewing the year's operations the directors state:— "The past season lias been very successful owing to the exceptionally beautiful weather experienced, being the brr;t for a number of years, and this has enabled the company to meet the largely-increased wanes costs, although the full extent of such costs has not been felt yet. The weather conditions have also enabled the company to- obtain the best results from the erection of the swimming pool at Milford. the number of passengers and vehicles having largely increased in consequence. During the past year the company's fleet has been added to by the erection of a new Diesel-equipped vehicular vessel, which is proving, up to the present, most satisfactory, and is a valuable adjunct to our fleet, thus enabling the company to give a better service to the travelling public."

Comments. From the accounts shown above it is evident that the company has had a particularly successful year, possibly one of the best ever experienced. Following their customary conservative policy the directors have kept the dividend at a comparatively low rate, using the extra earnings to strengthen finances. Cash reserves are down £18.000. this reduction following on the purchase of a new vessel for tlie vehicular fleet. At last annual meeting . the chairman of directors. Col. W. D. Holftate. stated that it would be necessary to draw upon reserves fn: , approximately £27.000 for this boat. As the item which includes steamers, etc. has only been increased by £10.000 it would appear that there has been a substantial writing clown of the fixed assets. The company does not supply any details of profit and Ws. and accounts of the Nori h Shore Transport Company are not available. It /eeme likely that the shares are under-valued at £50.000. This is the amount ,it which they were valued when the company was formed 10 years a;o. The bus fleet has been added to and improved out of all knowledge in the meantime, so that its asset value, tosether with ite earning pf-wer, must have increased.

Year Not Dividends. Reondi'd I'roBts. Rate. Amount, serves. .vpi. 3(>. A; p.e. 4; 11120 .. 11.257 "i 11.250 ir.,421 1 !»:;<» .. T 1.-41 7i 11.250 1(1.112 1031 .. 11.230 7j 11.250 111.302 1 032 .. 7.20.'I 7i 11.250 Hi.isr> 11133 .. 7.5*1 5 7.."no ii;.2(ir, 1 034 .. in. 177 r> 7,500 i»;.-1::r> 11135 .. 17.717 5 7."ion 11.550 io.si; .. m.tus 5 7.riiin ii.sr.c 1037 .. 10.022 5 7.500 13.21 o 103* .. 111,030 5 7.500 13.ISO

Compn rod April 30, with 103S. 1 037. Paid capital 15O.000 Same Reserve 1o,8ti7 Same Steamer insurance .. 13,1.">0 Same Accident insurance . . 3.noo Same Hoiler renewal 3.O00 Same I'lant replacement .. 2.000 -f-2.000 Income tax 10,500 -i-2.ooo North Shore transport — —.~0r> Sundry creditors .... 0,252 +1,012 ASSETS. Steamers, plant, etc. . sr>.304-i- —10.003 Property, mort.. etc. . 23.OR0 -4-244 Shares and debentures Ol.OliO + 3,17('i Sundry debtors .... 1,30!) + 206 (government stock.... 12.0'.i.S Same Stock 3.S44 +31 Cash 12.300 — 1S.2K0 Income tnx certificate 4,010 —00 Total assets .... 204.832 + 4,372