N.Z. AND AUSTRALIAN LAND COMPANY.

Press, Volume LXV, Issue 13612, 22 December 1909, Page 2

N.Z. AND AUSTRALIAN LAND COMPANY.

ANNUAL REPORT

(from our own correspondent.) LONDON, November 12. The annual report of the Neiv Zealand and Australian Land Company for tho year ended March 31st i'ast, states that the net profit amounts to £295,299, which, with the balance brought forward, makes the balance ot credit of revenue account £299.618. The directors recommend that, after payment of the dividend on the preference stock, a dividend b© paid on the ordinary stock of 7 per cent., and c bonus of 3 per oent., both free of income tax, and that £188,500 be carried to reserve fund, which, with £11,500 transferred from suspense account, will thus be increased to £450,000, leaving £5118 to be carried forward. Tho Teport states that the proposal to capitalise the reserve fund 1 as additional ordinary stock has been before the shareholders for some time, and the allocation to this fund now recommended will increase it to £450,000, the capitalisation of which will raise the ordinary stock to £1,000,000. It is proposed that this be carried out about the beginning of next year. In its notes on industrial companies tine '"Financial Times" this week deals with the New Zealand and Australian Land Company, which was formed in 1*77. The company has been thiough many vicissitudes, but the shar«holders p.re now shortly to have submitted to them proposals for capitalising +ij e reserve fund, which has been bui t up to £450,000. The "Financia. Times' proceeds :—" At its incorporate fey Act of Parliament the company was an amalgamation of the New Zealand an d Australian Land Company, and .he Canterbury and Otago Association, Ltd., and' 'before the first reduction v as carried out in ISSI the oajital was £2,000,(X50, in £1,500,000 ordinary stock. and £1,000,000 fow per cent. "A" preference fetoclv. ; n ISBI the ordinary capital was red-cod to £1.250,000, and in IS3B a furthe- £700,000 was written off es being unr.presented by available assets. Th« share capital is now in i1.000.0C0 four per cent. "A" prej>. r .e nce stock, and £550,000 ordinary s tock. while there are also debentut- s anc ; debenture stock to the amount o f £715,1C0. By the pressed cnnitah^ t j OTl o f t h c r*srrve fund tlie ordinal- caoital v. i'A be :v.i-?d to 1-1,C00,000. i n the two years preceding 1901 a .s m o f £70,000 was set aside to meet di,us;ht losses, nnd whon in 1901 the drowlv, caused a loss on the year of ~7,XC0. tho £70.000 was brought in an<i <nve<3 the situation. Prior to 1905 fir v o ne-h<ilf of tho capital of the compai. was ; n . vrvtod in New Zealand. bn?->winc; to the compulsory to the Ne\ Zpa ? an<l Government of a biz estate r.] c j by the company, a large amc nt o f capital was released, and tvgs re nvos ted in estates in A;istral-a. r-rthor sales of lp.nd in New Zealand J; ev e since been made, and the report f or the year enile.l 31st March !avt. issued, gives the value of freehold ,- ro- . at £1.473,. r >oo. of which *.) v £157.200 is represented in New £j. land. Leasehold properties appear-» £512,200, of which only £o?00 is * n j New Zealand. Dixlucting £80,600 at t» \ credit of sinking fund account. till value of leisc-holds is placed a I £422,500. ThLs transfer from New Zealand to Australia entails greater risks from weather, and is given as

the reason for the big appropriation from net profits in tho recent good years for contingencies. After' the proposed capitalisation of tho reserve fund proner there will still be a contingency fund' of £380,000, so that the company is well provid^ed'."