COMPANY AFFAIRS.

Auckland Star, Volume LXIX, Issue 139, 15 June 1938, Page 4

COMPANY AFFAIRS.

CONSOLIDATED BRICK. IMPROVED RESULTS. DIVIDEND 4 PER CENT. Despite serious trading difficulties the accounts of Consolidated Blick and Pipe Investments, Ltd., for £he year ended May 31, show a substantial improvement. A final dividend of 2% per cent, making 4 per cent lor the year, is recommended. The interim dividend of 3d a share, equal to IV* per cent, was paid in December last. Xo dividend was paid for the 1936-37 year and that of 2 per cent for the year ended May. 1936, was the first distribution for live years. The profit for the past year was £22.615, against £73 in 1936-37. Of the earnings £22,602 was paid as dividend by the subsidiary companies. With the balance of £736tt brought in there is £29,975 available. The year's dividend requires £'22,349 (£6984 interim and £15,365 final) and £7626 will remain to be carried forward. Balance-sheet Items. Balance-sheet movements compare as folows: —- LIABILITIES. £ £ Paid capital 538,536 + 8 Unclaimed dividends . . 21 +21 Profit and loss account 22,991 +15,631 ASSETS.

Shares in subsidiary cunnianies 558,539 +8 Debtors 7.179 —S Bank 15,830 +15,060 The balance-sheet total is £15.600 higher at £581,548. It is explained that the amount shown under debtors is on loan at call to the subsidiary companies. The directors in their report state that the past year has been a difficult period of adjustment to the manufacturing costs, which are continually increasing. Wherever possible those costs have been passed on to the public, but there is still a substantial portion of the company's turnover on which the selling price is the same as was ruling in the first year of the company's existence. Direct manufacturing costs are still increasing, while there is no immediate prospect of any reduction in the very high rate of taxation at present levied on companies by the Government. The amount reserved by the trading companies for income tax alone has amounted to £11.851. more than sufficient to pay a 2 per cent dividend to shareholders. Depredation Provisions. The trading companies have this year written oft' depreciation amounting to £21,307, as against £20,886 for the previous year. Total depreciation for the nine years since the inception of the companv amounts to £132,618, an average of £14,735 per anuum. In addition the directors have spent in repairs and replacements during the year £13.189, as against £11,314 for the previous year. The average yearly amount has been £9505. Reference has been made by the audi- | tors to the effect that no provision has , been made for the losses of Kamo Potj teries, Limited. This is the only subsidiary of Amalgamated Brick and Pipe | Company, Limited, and the losses amount Ito £1355 all of which are accumulated ! losses from previous years. No provision , has been made in the profit and loss J account of Amalgamated Brick to cover j these losses, as it is considered that the | profits made by the subsidiary will in i future provide for this. I During the year the resignation of Mr. | Malcolm Clark .was received and the 1 appointed in bis sUad Mr. James Fletcher to represent membeis in the A. part of the register. All the directors retire and are Available for re-election.