BRADFORD WOOL MARKET

Press, Volume LXXXVI, Issue 26263, 7 November 1950, Page 9

BRADFORD WOOL MARKET

TOPS AT HIGH LEVEL

STRONG OPENING TO N.Z. SALES ANTICIPATED

(Special Correspondent N.Z.P.A.)

LONDON, November 6. - With Dominion wool prices practically back at< the highest point of the season in Merinos, and above the previous highest point in fine crossbreds, the Bradfbrd tops market was dearer again last week, and there was substantial buying inquiry at some of the highest prices ever quoted, says the International Wool Secretariat special news service. The price level dictated considerable caution, ana there was general reluctance either to sell uncovered or to carry much unsold stock. However, there was still a considerable turnover, and many topmakers have already sold most of their output for the remainder of 1950 and thefirst three or four months in 1951. Production of partly and fully manufactured Soods is being maintained generally at igh levels. Bradford is now experiencing a between seasons gap in wool imports and is awaiting bulk arrivals of the new season’s Dominion wool. Despite the high price level, business was available in practically alk qualities of wool tops and yarns, and Yorkshire is probably buying more wool in the Dominion markets just now than at any previous stage this season. Medium crossbred tops quotations yere described as highly protective, in anticipation of a strong opening to the New Zealand wool marketing season 10 days hence. / Tops quotations are:—7o’s, “A” 255 d per lb and fl B” 248 d; 64’s, “A” 244 d and "B” 238 d; 60’s, super, 217 d to 218 d; 58’s, super, 195 d; 56’s, super, 172 d; 50’s, 151 d to 152 d; 48’s and 46’5„150d.

COMPANY NEWS

LOAN AND MERCANTILE ACCOUNTS A net profit of £5tg.212,704 was earned by tne New Zealand Loan and Mercantile Agency Company, Ltd., for the year ended June 30, against £162,085 in the previous year. The result Is given in a preliminary statement drafted in accordance with the latest requirements of the London Stock Exchange. The net profit was struck aftfr providing for deferred maintenance, the amount of which is not given in th’e preliminary report. Last year the provision was £8459. Ordinary dividend, as already announced, has been increased from 6 to 7J per cent., and the bonus has been raised from 2 to 24 per cent. These payments, together with the preference distribution of 5 per cent., absorb a total of £96,250. Contingencies fund has been strengthened by the addition of £lOO,OOO and £lO,OOO has been placed tp the staff fund. After these appropriations a balance of current profit of £6464 remains to increase the carry-forward to £94,161. Results for three years are:— 1948. 1949. 1950. June 30. £ £ £ Brought In .. 68,894 70.596 87,707 Net profit .. f 161,728 1162,085 212,704 From subsid. 62,474 • 293,096 232,681 300,411 To gen. reserve 22.474 To cont. res. 100,000 40,000 100.000 Staff fund .. 40,000 10,000 Dividends— Pref., 5 p.c. 27,500 27,500 27,500 Ord., p.c. *8 ’8 §lO Amount .. 55,000 55,000 68,750 Carried forw’d. 70,596 87.707 94,161 tAfter providing for deferred maintenance of £4OOO in 1948 and £8459 in 1949. Amount not shown in current preliminary statement. •Includes bonus of 2 per cent, in 1948 and 1949. {lncludes bonus of 2J per cent. Group profit of the company and its subsidiaries. exclusive of the Australian group, was £224,228, against £165.627 in the previous year. The progt was struck after providing £4OO more for debenture interest at £76,000, and £173,182 more for taxation at £419,210, but before deducting outside shareholders’ interest of £2813. against £1327 in 1949.

EXPANSION AHEAD OF AUSTRALIA

A period of continuous expansion is ahead of Australia if opportunities are wisely used, according to Sir John Storey, chairman and managing director of Overseas Corporation (Australia), Ltd., manufacturers and holders of controlling interests in various concerns; in his annual report to shareholders. Australia would be dependent on imports of essential equipment for many years to come. There were no signs of slackening in the volume of business, which was considerably in advance of last year. The most important products handled by the company during tha year included prefabricated buildings from Britain and Europe, steel products, tractors, household equipment, and clocks and watches. The first commercial delivery of aluminium buildings was erected in April, and deliveries and erection had since expanded. The net profit of the company and its subsidiaries for the year ended June 30 was £46,768, against £53,178 in the previous year. The current year’s result was struck after writing off £13,448 for development expenses, patent rights, and a loss on fixed assets.

ASSOCIATED LEATHERS

1 Current sales by Associated Leathers, Ltd., were Well ahead of the same period last year, said the chairman, Mr A. Michaelis, at thu annual meeting in Melbourne on Friday. It was difficult in times such as the present to decide how much was due to inflation, but the board, was confident that a reasonable proportion represented genuine progress. Expenses, however, were also on an ever-increasing scale. During the year all minority shares in the group were taken over, making al! operating subsidiaries wholly owned. Businesses acquired had been left under their original control because of the goodwill they commanded in their respective States. The amount retained in the business from last year’s earnings represented about 39 per cent, of profits. This helped to provide for the ever-increasing capital cost of running the business and to provide for stable dividend rates. The company was formed in December, 1948, to control the activities of five established leather companies, including the New Zealand company of Glendermid, Ltd., Dunedin.

Australasian Paper.— The Australasian Paper and Pulp Company, Ltd., Melbourne, earned a net profit of £232,244 for the year ended September 30, against £182,415 in the previous year. Dividends are unchanged at 8* per cent, on preference shares and 6 per cent, on ordinary shares, and require a total of £232,084. Dividends are being paid on a pro rata basis on new issue shares. During the year paid capital was increased from £3,3Q5,410 to £4,137.901, bringing total consolidated shareholders' funds to £5,417,152. The consolidated profit of the company and its subsidiaries rose from £266.825 to £361,220. The result includes £57,771 equity of outside shareholders, compared with £59,002 in the previous year. Henry Berry Profits.— At the annual meeting of Henry Berry, Ltd., the deputychairman, Mr F. H. Bass, said that for the year ended June 30. 1950, the sales turnover was approximately £34,000 better than the previous year, and was a record for the company. Net trading profit was £37,635, an improvement of £6009. The heavy rate of taxation imposed upon companies necessitated a provision of £22,300, against £18,500 for the previous year, and this reduced the net increase to £2259, making the net profit for the year £15,335. With the amount brought forward from 1949, £51.008, the appropriation account credit balance totalled £66,343, and this was dealt with as follows to staff provident fund, £5000; transfer to general reserve, £10,000; interim dividend, £5000; final dividend, £5OOO (making 10 per cent, dividend for the year); balance carried forward, £41,343. The turnover for the three months ended September 30, 1950. showed an increase over the same period for 1949, and the prospects for the balance of the year appeared quite bright. The company’s business was still being restricted by it» inability to secure import licences adequate to supply the full needs of its customers.—(P.A.) Apex Investment —Gross revenue of the Apex Investment Company of New Zealand, Ltd., for the first quarter ended September 30 was £551, against £552 for the corresponding period in 1949. The valuation of shares was £66,892, compared with £69,155, while the surplus over cost rose from £8785 to £10,315.