COMPANY NEWS

Press, Volume LXXXVI, Issue 26151, 29 June 1950, Page 8

COMPANY NEWS

ANGLO-IRANIAN OIL

DIVIDEND OF 30 PER CENT.

A net consolidated profit of £18,444,209 was earned in 1949 by the Anglo-Iranian. Oil Company, Ltd., whose operating company in New Zealand is the British Petroleum Company of N.Z., Ltd., according to a preliminary statement. Th«e earnings compare with the previous year’s result of £24,064,920, which was the highest profit ever earned by a British company. Dividend for the year is maintained at 30 per cent.

The profit was struck after providing £24,353,920 for depreciation, against £17.683,902 in the previous year. Provision for taxation, which was £28,310,353 in 1948, is not disclosed in I the preliminary announcement.

The company, in which the British 1 Government is the largest shareholder, entered the New Zealand oil business in 1946 in partnership with the New Zealand Government. Of the £2,500,000 capital of the operating company, the British Petroleum Company of N.Z., Ltd., 51 per cent, is held by the New Zealand Government and tiie remainder by Anglo-Iranian. Commenting on the latest results, the financial editor of “The Times” says that the payment of 30 per cent, on ordinary stock is probably equivalent to barely *3 per cent, on the total capital employed. In spite of the huge amounts provided for depreciation, the board was able at the same time to add another £10,000,000 to general reserve on top of the 1948 allocation of £16,000,000, and a further £1,000,000 to preference stock reserve. "Anglo-Iranian, in common with other oil companies, has still very large capital commitments in connexion with the programme of expansion of its refineries, pipe-lines, and tankers,” states “The Times.” "and the funds now retained in the business will be put to good use. But a L present rate of accumulation, the effective capital will soon bear a quite fantastic relation to the share capital actually in issue.”

FARMERS’ TRADING

TURNOVER OF MORE THAN £5,000,000 (New Zealand Press Association) AUCKLAND. June 28. r *_, Sal ® s - by the Farmers’ Trading Co., Ltd., during the past financial rear, at £ 5,072,236, create a record in New Zealand s commercial history,” said the chairman of directors, Mr A. D. Bell, in his annual address to shareholders to-day. Outlining the company’s contribution to the country, the chairman said that m the last 10 years it had paid £1,716.000 in income and social security taxes, or the equivalent of its whole paid capital every four and a half years. Transactions of the company resulted in £58.000 being added annually to the Post Office revenue while railway freights amounted to £16,000 yearly. It was impossible to estimate how much the company paid annually in customs duty, sales tax, and other taxes. The .company relied on New Zealand manufacturers, wholesalers, and its own factories for 87 per cent, of its merchandise. In the last 12 years the value of its local buying had more than trebled and in the last financial year goods worth £3,465,000 were bought locally. The chairman continued that the company’s major responsibility to its permanent staff of 2000 persons was to make a profit so that they might have regular employment. The staff last year earned £701,000 in wages. Dealing with the balance-sheet. Mr Bell said that the funds of the company were fiilly utilised for the first time in many years. The main factors accounting for the decrease in surplus funds were the expansion in turnover, which necessitated greater stocks and an increase in debtors’ balances, rising prices which increased the outlay in stocks, and debtors. and the gradual improvement in the stock position in New Zealand which made more goods available. Liquid assets now totalled £1,603.973, which was an increase of £196.174 on last year's figure. There was a surplus of £984.492 of total assets over all external liabilities. A dividend of B’2 per cent, was approved.