COMPANY NEWS

Press, Volume XCI, Issue 27679, 8 June 1955, Page 17

COMPANY NEWS

N.Z. BREWERIES, LTD.

RECORD PROFIT REPORTED (New Zealand Press Association) AUCKLAND. June 7. Net profit of New Zealand Breweries, Ltd., Wellington, increased by £32,446 to reach a new peak of £281,743 in the year ended March 31. The result, which is equal to an earning rate of 15j per cent, on paid capital, against 14 per cent, in the previous year, was struck after provision of £19,641 more for .depreciation at £32,598 and unspecified taxation. Dividend has been maintained at 8$ per cent.,, and absorbs £143,372 on the capital, increased by £51,382 to £1,686,761 during the year by the acquisition of Southland Breweries, Ltd. Transfers to general reserve (£25,000), insurance reserve (£5000) and debenture redemption reserve (£50,000), are the same as those in the previous year. /The net profit exceeds the dividend and reserve requirements by £38,362, and the carry-forward is increased from £98,257 to £136,619. Gross profit from all sources expanded by £96,974 to £1,601,592, and expenses, apart from depreciation, were £44,887 higher at £1,013,260. A feature of the accounts is the writ-ing-back of previously undisclosed reservices. The directors* report states that certain specific provisions amounting to £500,000 made in the past for the general security of the company, and which, because of changed conditions, are now no longer considered necessary, have been transferred to general reserves, along with £85,000 from the realised surplus on the disposal of certain assets. Including the £25,000 transferred from the latest profit, general reserve now stands at £1,135,000, an increase of £160,000.

The New Issues « The directors’ report also states that, because of the proposed bonus share issue of one for siv, the share premium account arising from the 1937 share issue has been reinstated,’* and will form part of the fund distributed, so that 10s 2d of each bonus share will form part of shareholders non-assessable income. At the company’s annual meeting in 1938, it was stated that these share premiums, amounting to £135,777, had been applied to writing down land and buildings. Following the writing back of these reserves, shareholders’ funds now stand at £3,354,147, an increase of £890,521. As previously announced, proposals to make a one-for-six bonus share issue and a one-for-seven cash issue at a premium of 10s a share will be placed before shareholders at the annual meeting on June 22. Shareholders will also be asked to' approve an lncrea se in nominal capital from £2,000,000 to £4,000,000, and the conversion of shares into stock units. The bonus issue will be carried out by capitalising the reinstated share premium account of £135,777 and £145,350 of the general reserve. The bonus and cash issues will increase paid capital to £2,249,015. Queensland Insurance.—An interim diviof 6i per ccnt * 18 « on Jun « 10.— (P.A.) Count, Somerville, Wilkie.—The final preference dividend of 2} per cent, is ex on June 30.—(P.A.) Claude Neon Lights (N.Z.)—An interim dividend of 4 per cent, is announced, ex June 20.—(P.A.) • R. and E. Tlngey.—The usual half-yearly preference dividend of 3 per cent, will b « P®W on June 30, ex June 14.—(P.A.) Ballins Dividends.—Ballins Breweries (N.Z.)*.. Ltd., announce unchanged halfyearly interim dividend of 3 per cent, ordinary and 2J per cent, preference, payable on July 31 to shareholders registered on July 4. Gordon and Gotch.—Gordon and Gotch (Australasia), Ltd., earned a consolidated net profit of £318,241 in the year ended March 31. Latest profit compares with £310,314 in 1954, and is struck after unstated tax and charging £28,217 for depreciation. A year ago depreciation took £25,979. Final, ordinary dividend of 5Jd a share makes lid for the year on bonusincreased capital. Latest distribution equals 27J per cent, on pre-bonus capital, compared with 25 per cent, last year.— Norvic Shoes Show a Loss.—The annual accounts for Norvic Shoes (N.Z.), Ltd., show that the operating company, Norvic Footwear, Ltd., ran at a loss of £1740 in the year to January 19, compared with a loss of £4472 last year. This was struck after allowing ordinary depreciation of £3682 on all plant except the new factory building. Again, no dividend is recommended. The balance-sheet of the manufacturing subsidiary. Norvic Footwear, Ltd., shows that bank overdraft has risen from £18,691 to £30,051 while trade accounts and accruals are down from £27,222 to £15,091. On the assets side stocks have risen from £47,654 to £51,083. Gross profit for the year was down from £22,388 to £19,096, while expenses were reduced from £22,916 to £17,156.