MORRIS HEDSTROM

Auckland Star, Volume LXXVI, Issue 147, 23 June 1945, Page 3

MORRIS HEDSTROM

LOWER PROFITS FORECAST "We are now definitely »t the end of tfe» t boom period, and shareholders must be prepared < for profits on a reduced scale," say« the chairman. Sir Maynerd Hedatrom, in his annual address to shareholders of Morris Hedstrom, Ltd., Fl.ll. "The sugar crop for 1946 will be far below the average but price* tor eane are likely to continue on a. high lerel. Similarly, it is hoped that the price* for copra throughout, this year will be maintained at somewhere near their present level. Taking all circumstances into consideration, the directors are of opinion that the financial position. of the company justifies a recommendation that a final dividend of per cent be declared on, ordinary shares, making 10 per cent lor • the year. "The company has a very extensive building programme in prospect—certain plans were prepared In I*3B-1939. but the work had to be deferred on account of the outbreak of war. Wβ have no idea when we can commence operations, but it will be very soon after cement and steel become available in sufficient quantity. In my last report I referred to the position of preference shareholders with regard to Income tax. I understand Government has deferred consideration of Income tax legislation until after the war, and there Is no indication a« to what decision will be reached regarding preference shareholders." Net profit for the year ended March 31 was £8f1,703 against £88,839 in the previous year and £80,747 in 1843. Preference dividend of 6 per cent absorbed £13,152, while the year's increased ordinary dividend of 10 per cent (final 534 per cent) requires £52.040. A sum of £20,000 has been added to general reserve and the carry-for-ward is £128,787 against £127,276 brought in. Previously the ordinary distribution *u 8U p.o.