COMPANY NEWS

Press, Volume LXXIII, Issue 22269, 7 December 1937, Page 13

COMPANY NEWS

NATIONAL TOBACCO The directors of the National Tobacco Company, Ltd., in their fourteenth annual report for the 12 months ended October 31, 1937, state that the manufacture of cigarettes has been added to the company's activities. During the year sales have further gone ahead, as is shown by the excise and customs duties paid, which amount to £260,000, compared with £230,000 for the previous year. "Notwithstanding this increase in sales, profits have still further declined and sunk to a level that is in strange contrast with our successful operations and the extra work put in. A bigger staff, a bigger output, and our continuous efforts, all this has been of no avail in the face of the higher cost. A net profit of £14,000 represents just a fraction more than 2 per cent, on the turnover." Shorter hours and higher wages, the report continues, have placed the company at a disadvantage compared with overseas concerns, and unless added protection were given the industry offered no encouragement either to the manufacturer or grower. The balance-sheet shows that the item property, plant, and machinery is higher by £16,000. This increase represents part of the cost of the cigarette plant and extension of factory buildings. Stock of raw leaf, manufactured tobacco, and material is higher by £23.000, and sundry debtors by £6OOO. The credit balance at the bank has shrunk in proportion, and now stands at slightly over £43.000. After deducting all charges, writing off £5043 2s 9d for depreciation on buildings and plant, and allowing the sum of £13,000 for income tax, there is a balance left of £14,677 9s 6d (against £19,206 last year), which represents the net profit for the year. To this must be added the balance of £6351 8s 9d brought forward from last year, making a total of £2l,tWB 18s 3d available for distribution. Out of this the directors recommend the distribution of a dividend of 12J pert cent., unchanged, on the ordinary shares, and 8 per cent., unchanged on the preference shares, absorbing £16.353 13s Id, and to carry over into next year the balance of £467.) 5s zd.

GOLDEN BAY CEMENT The directors of Golden Bay Cement Company. Wellington, repwt for the year ended June 30 a profit of £6BBB, after making provision for depreciation. Net profit for 1936 was £-5671. The directors recommend that a dividend at the rate of 5 per cent, on the paid-up capital of the company be declared. This will absorb £3624 ana will be the first dividend received by the shareholders for some seven years. Income tax will amount to £3159, and after allowing for these two amounts a credit balance of £4lB will be carried forward in profit and loss account to next year. . . The directors report that the improved demand for cement continued during the year under review. This increased demand for cement has reflected its results in this year's accounts. , __, -, The Hon. V. A. Ward, M.L.C., resigned from the board during the year, and Mr C. W. Salmon was appointed to the vacancy. Mr C. N. Cathie, the retiring shareholder-director, and Mr Charles McArthur, the retiring de-benture-director, offer themselves for re-election.

AMALGAMATED WIRELESS Sir Ernest Fisk, chairman of Amalgamated Wireless (Australasia). Ltd at, the annual meeting on November 29. described how the company s activities had continued to expand. „,„ (Prl He said that plans were completed and equipment put in hand during the year ended June 30 to establish a world-wide broadcasting service at Suva This new station should be in operation within the next few months, and although it was not expected to improve the company's revenues for some time, it was hoped that reasonable return would come later, lne AW A. broadcasting service in Sydney had been further expanded, and was now both successful and profitable. The A.W.A. manufacturing works at Ashfield had maintained a high standard of output in all directions, and the increasing demand had made it necessary still further to extend the premises and plant during the year. In the new section of telephone manufacture the company made and delivered to the Postmaster-General's Department some 30.000 hand-set telephones during the year, and further orders are now in hand. The new electromatic traffic signals now operating in Sydney and other cities were being made at the works. The growth in commercial aviation and provision of airports had made further demands on the works for special equipment to provide communication and radio navigation facilities on the ground and in the air. The company's coastal services for ships had been expanded temporarily to provide communication with the new commercial air lines until the special equipment was ready. The subsidiary, the Amalgamated Wireless Valve Company, Ltd., had further increased its capacity and output, and was now capable of producing 1,000,000 radio valves a year. A new section was being developed to manufacture transmitting valves. The total number of A.W.A. employees during the year reached a peak of 2700. Sir Erest Fisk said that a contract had been let for demolishing the old buildings in York street and for erecting on the site a modern structure which, it was hoped, would contain all of the company's activities in the city. The company, he added, had paid during the last year to its employees approximately £500,000, and to other suppliers of goods and services approximately £500,000, and to various Government bodies throughout Australia approximately £400,000. QUEENSLAND INSURANCE During the last year the business of the Queensland Insurance Company, Ltd., was well maintained, the chairman, Mr James Burns, told shareholders at the annual meeting last week. The income, he said, showed a satisfactory increase, though competition from non-tariff organisations outside Australia continued to be severe. Insurance companies generally appeared to be finding that motorcar and workmen's compensation insurance was productive of high-claim ratios, and it was apparent that the ruling rates of premium for these classes were too low. The country organisation of the company had been considerably strengthened during the year. Foreign business was steadily improving, but the Sino-Japanese hostilities had naturally had the effect of curtailing returns from that quarter. Taxation was still a serious load for private enterprise to carry, and was naturally a handicap to progress; unfortunately there appeared to be little opportunity for relief at present, in view of the large additional world-wide expenditure on defence. The slight alteration in the method of presenting the accounts, Mr Burns said, was in accordance with the provisions of the new Companies Act. The increase of £SOOO in the item freehold properties was owing to the purchase of properties for the Wagga and Orange branches. In the profit and loss account losses had been heavier than usual, but the ratio to net premiums of 53.11 per cent, was considerably lower than the general experience as contained in the statement of important companies published recently.