COMPANY AFFAIRS.

Auckland Star, Volume LXIX, Issue 212, 8 September 1938, Page 8

COMPANY AFFAIRS.

PROFITS FALL*

KAIAPOI WOOLLEN COMPANY.

DIVIDEND REDUCED,

[ The Kaiapoi Woollen Manufacturing Company, Limited, dropped 7 per cent in gross earnings in the year ended July 19, 1938, compared with the figure foti the previous year; and dropped 32 per cent in net profit. Ordinary dividend has been reduced from 5 to 4 per cent. Preference dividend is the usual 5 per cent. Gross earnings in the company's latest year's trading were £86,631, compared with £93,094 in the previous period; and net profit £ 12,643 against £18,417. Transfers to taxation and general reserves, which last year took £2500, are not recommended in the report just issued. Depreciation this year takes £5000, against £7000 a year ago.

The directors' report states that -trading cdnditions in the early part of the year were reasonably good, but considerable recession occurred in the second half of the year; and this factor, together with the heavy increase in taxation and working costs, curtailed the surplus. Land and income tax requirements amounted to £11,709 —almost sufficient to pay 5 per cent on the ordinary capital of the company. Stocks at £294,226 are £32,332 higher than a year ago. Properties and plant have increased by £18,381, principally accounted for by additions to flant. Tear ended July IS. 1937. 1938. £ £ Gross earnings 93,094 86,631 Net profit 18,417 12,643 Div. (pref. 5 p.c.) .... 3,260 3,260 Dlv. (ord. p.c.) 5 4 Div. (ord. amount) .... 12,115 9.692 To taxation reserve .. I.OGO — To general reserve .... 1,5(>0 — Carry forward 1,009 701 LIABILITIES— Paid capital 307,500 307,500 Deposits against call.. 21,654 5i,654 Bank of NJS. 72,612 143,018 Mortgages .. 16,230 16.000 Deposits 94,179 70,245 Stindry creditors 20,357 15,876 Unclaimed divs. 6 167 Reserves (mlscel.) .... 34,604 38,169 Profit and loss 18,885 13,652 ASSETS— Properties and plant .. 244,973 263,354 Sundry debtors 75,493 65,435 Bills receivable 670 165 Cash 185 708 Cash against goods in transit 515 — Shares and insurance 1,572 |2,110 Mortgages held 728 286 Stocks ............... 161.893 294,326

MILBURN LIME COMPANY.

RECOVERY IN PROFIT.

DIVIDEND UNCHANGED. (By Telegraph.—Own Correspondent.) DUNEDIN, Wednesday.. A net profit of £23,750, the best since 1934, is enown in the 50th annual accounts of the Milburn Lime and Cement Company, Limited, against £16,259 last year. The dividend, as previously announced, is unchanged at 8% per cent for the year (interim 3% per cent, final 5 per cent). The distribution requires £ 17,500, and it is proposed to set aside £6000 for newplant, leaving £76?0 to be carried forward, against £7420 brought in. Results For the past three years compare as follows: — 1936 1937 1938 £ £ £ Brought forward' .. 0,102 8.661 7.420 | Net profit 20,059 10,259 23,750 \ £26,101 £24,920 £81,170 Dividend, 8| p.c. .. 17,500 17,500 17.500 | New plant — • —- 6,000 Carried forward .. £8,661 £7,420 £7,670 I The present rate of dividend has been maintained since 1934, when a record profit of £25.259 was earned. Paid capital is £200,000. BROKEN HILL SOUTH. NET PROFIT FALLS HEAVILY. Broken Hill South, Limited, in an advance statement of the year's financial results, discloses a heavy fall in net profrt for 1937-38. After providing for depreciation, taxation and royalty, the profit of £402,501 is £365,815 lower than that for the previous year.

Reflecting mainly the severe decline in metal prices, profit from the mining section of company's business at £276,159 shows a fall of £388,644. As a slight offset, net income from investments is £22,829 higher. Dividends totalling 80 per cent require £640.000, or £237,499 mere than the profit. A balance of £510,240 was brought into the accounts.

The dividend for the first quarter of 1988-39 has been reduced to a rate of 40 per cent per annum.

Tear ended June 30, 1936. 1937. 1938. £ £ £ Total net profit 486,197 768,?16 402,501 From—• <

Mining 387.747 664,803 276,159 Investments 98.450 103.513 126.342 51* . P-c 62J* 70 80 Div.. amt. . . 500,000 560.000 640,000 •Including jubilee bonus of 12J per cent. The annual report and accounts w ill be issued ill October.

CANTERBURY FARMERS.

PROFITS £6566 HIGHER.

(By Telegraph.—Press Association.)

CHRISTCHURCH, this day.

The New Zealand Farmers' Co-operative of Canterbury, Limited, shows a further sound improvement in the accounts for the year ended July 31. Net profit rose by £6566 above last year's figure to £53,640, gross profit increasing from £217,319 to £218,803. 1 . Recommendations are that £17,250 be reserved for income tax, that dividends of 4% per cent on first preference shares and of 4 per cent on both A and B preference shares (unaltered from last year) be paid, and that the balance of £18,200 be applied to the reduction of the deficiency shown in the balance-sheet, which will then stand at £201,461. The main features of the accounts are that secured deposit, stock has been reduced by £232,582 to £659.396. and the reserve has risen from £11,509 to £33.468. The liquid position remains good at £84,000.