COMPANY NEWS

Press, Volume LXXXIX, Issue 27073, 23 June 1953, Page 13

COMPANY NEWS

DONAGHY’S ROPE ACCOUNTS QUALITY OF N.Z. FLAX DISCUSSED (New Zealand Press Association) DUNEDIN, June 22. The price and quality of New Zealandgrown flax were causing concern to Donaghys Rope and Twine Company, Ltd., said Mr J. H. Meek, the company’s chairman, at the annual meeting of the company today.

Imported fibres were considerably stronger and cleaner than New Zealand phormium and overseas prices were becoming very close to those of locallygrown flax, Mr Meek said. He warned New Zealand flaxmillere that if thev wanted to compete with imported fibres they would have to give more attention to quality. Reviewing the accounts, Mr Meek said that, although the net profit for the year ended March 31, £25,519, was £461 lower than the previous yeaY, it was satisfactory because of changed conditions and falling prices of many of the raw materials used by the company. The company’s turnover was maintained during the year and the manufacturing profit showed an increase of £5142. The profit on this account was £111,927. Salaries and other charges increased by £8552.

Referring to the balance-sheet, Mr Meek said that fixed assets had increased from £186,236 in 1952-to £192,025. During the year the company bought land adjoining the Auckland factory for £B7OO which was considered a valuable acquisition for the company’s future expansion. Mr Meek said that, although the company required additional stores in Dunedin and Auckland, the directors had delayed in carrying out this programme because of high building costs. Investments and advances showed an increase of £26,421 above 1952..

DOMINION BREWERIES’ PROFIT RISES

(New Zealand Press Association) AUCKLAND, June 22. Net profit of Dominion Breweries, Ltd., was lifted £69,903 above last year’s peak to reach £179,207 for the year ended March 31.

The result was reached after setting aside £251,257, or £49,697 more than last year, for taxation and providing for ordinary and special depreciation. There has been a continuous increase in net earnings since 1946. Dividends on ordinary and participating preference shares, unchanged at. 13 per cent., take £91,000 on the first full year of the higher capital. The general reserve has been increased during the year by £78,402. Sums of £8527 profit above book value on the sale of assets and £95,310, an amount previously provided against contingencies, no longer outstanding have been added, and £26,435 has been written off investments. Net profit exceeds dividend requirements by £88,206, and undistributed firofits have been raised by this amount o £206,788. Gross profit from trading and other sources rose by £135,813 to £602,517. Administration expenses increased by £15,651 to £103,105, but the cost of repairs and maintenance, advertising, travelling expenses, commission, head office depreciation and staff superannuation showed a triflng rise of £563 to £65,949. Farmers’ Fertiliser.—The New Zealand Farmers’ Fertiliser Company Ltd., will pay an annual dividend of per cent., plus a bonus of 1 per cent, (unchanged) ort ordinary shares. Final dividend on the preference shares is 2% per cent. Shares are ex-dividend on July 24.—(P.A.) Aluminium Dividend.—The Aluminium Company of New Zealand, Ltd., will pay a final dividend of 4 per cent, on both preference and ordinary shares on July 31. An interim dividend of 3 per cent, was paid in January. Total distribution, at 7 per cent., compares woth 10 per cent, last year.—(P.A.) Trustees and Executors Co.—The profit of* the Trustees, Executors, and Agency Company of New Zealand, Ltd., for the year ended March 31, was £3764, subject to taxation. The directors recommend that £1462 be provided for taxation, leaving a net profit of £2302, compared with £1907 after provision had been made for taxation, a year previous. The dividefid, raised from 6 per cent, to 7 per cent, (final 4 per cent.), will require £2lOO, and the carry-forward will be increased from £1795 to £1997.

OUTLOOK FOR WOOL FUTURES

SOME “STICKY” PERIODS POSSIBLE

The new London wool futures market now trading in wool tops (combed wool) started off extremely well, states the London "Financial Times.” Although it is likely to pass through some "sticky” periods during its first year or two, there is a feeling in some quarters that it will develop • into a highly important market, the paper adds. In New York and Antwerp there are traders who think that - eventually the sterling terminal market will take over a large slice of the international business in this sterling commodity. In the United States the position now is that the major part of American wool business is linked up with the New York terminal market. The latter has, however, only built up this importance after much uphill work in its earlier years. It is natural that the London market should be quiet now.. It started toward the end of the season and by now South African and New Zealand selling is completed, while in Australia selling has only a few more weeks to run. Continental support at the outset was small, but may be expected to increase eventually. It is only just recently that the German trade has been given permission to operate in London. In France negotiations are going on and it is hoped that permission to operate will soon be given.

At present, with the wool-buying season nearly over and with Bradford production probably mainly sold until OctoberNovember, wool consumers are preoccupied mainly with keeping production running smoothly and making deliveries in good time so as to swell their cash resources. The German industry seems to be largely booked up until the end of the year and Belgium is also well sold. As far as raw wool buying is concerned, programmes are now largely completed, but there is probably still adequate buying power to maintain prices during the remaining few weeks of the season. MINING Dredging Returns.—For the half month ended June 15, Arahura Gold worked 209 hours, handling 93.000 yards, for a recovery of 2610 z gold. Kanlerl Gold worked 172 hours, handling 50.000 yards, for a recovery of 171 oz gold. Snowy River, for the period up to June 19, worked 264 hours, handling 52,000 yards and recovered 89oz gold.—(P.A.)