COMPANY AFFAIRS.

Auckland Star, Volume LXXI, Issue 13, 16 January 1940, Page 4

COMPANY AFFAIRS.

B.H.P. BONUS ISSUE.

NEW CAPITAL LATER.

As a result of an extraordinary meeting of Broken Hill Proprietary in Melbourne on January 5, the company's proposal for a 64-for-100 bonus scrip issue, involving £4,459,790, and lifting paid capital to £ 11,410,868, is to be carried out. Coming from share-premiuiu reserve, the issue will not be subject to Commonwealth income tax or ordinary State taxes. The company will then have the second largest share-register in Australia, ranking next to the Colonial Sugar Refining Company. Nominal capital is also being increased from £15,000,000 to £25,000,000, but there will not be an immediate issue of shares for this purpose. On an ex-rights basis, investors at the current market rates obtain a return of nearly 4 per cent, assuming a 10 per cent dividend. Sufficient was earned last year to pay 12% per cent on the bonus-enlarged capital. WOOLWORTHS' CHAIN GROWS. TWENTY NEW STORES PLANNED. Over the next 12 months Woolworths, Ltd., with headquarters in Sydney and its subsidiaries, expect to open another 20 stores, increasing the links in the chain to 100. So far business has been almost unaffected by the war, and with 80 per cent or more of sales comprising Australian manufactured products, the management does not expect to have many stock worries. WOOLWORTHS' HOLDINGS. INCREASE IN EARNINGS. Woolworths Holdings (South Africa), Ltd.. showed net earnings £12,053 higher, at £79,233 for the year to September 30, shares (£13,800), the balance represented 18.9 per cent on the £345,000 of ordinary capital, and the 10 per cent dividend was continued. Undistributed earnings, etc., now total £86,067. WOOLWORTHS (VIC.), LIMITED. Woolwprtbs (Victoria), Limited, have increased the capital of the company to £500,000 by creating 250,000 ordinary shares of £1 each, to enable further ordinary capital to be issued to the parent company, WooJworths, Limited (Sydney), to cover the expanding requirements of the organisation in Victoria. Two more branches will be opened next month in Victoria to bring the number to 16. MOUNT LYELL OUTPUT. Mount Lyell's contract with the British Government involves a maximum of 7000 tons of copper a year, the price being £48 10/ sterling, f.0.b., Sydney, with provision for adjustment according to costs. In order to supply the maximum quantity the company would have to increase its production by over 50 per cent, as almost the entire 13.000 tons of electrolytic metal now produced each year is absorbed in Australia, and the demand for industrial and defence purposes exceeds the present rate of production. As the mine is extended the Grade of the ore falls, and a considerably larger volume must be out through the plant to produce the annual o\itput.