COMPANY NEWS

Press, Volume XCII, Issue 27734, 11 August 1955, Page 17

COMPANY NEWS

NET PROFIT EXCEEDS £90,000 J. J. NIVEN’S POSITION The company could look to the future with confidence, tempered ty the realisation that such anti-inflationary measures as restrictions on bank credit must affect the sales of major capital equipment, said the chairman, Mr G. G. Watson, at the annual meeting of Jas. J. Niven and Company, Ltd., in Wellington. The same result might come from the present inability of local bodies to raise all the loan moneys they required. Any further depreciation in the markets tor New Zealand • dairy and other primary products must affect the comnaay in common with the whole community. He felt confident, however, that the company y.’ould stand up to any such adverse factors at least as well as eny comparable business In New Zealand. Mr Watson said that the net profit for the year, amounting to £91,107, was the largest ever achieved by the company. The - dividend (8 per cent.) and bonus (1 per cent.) recommended by the directors represented a 20 per cent, increase in the pay-out to shareholders as compared with last year, when a dividend of 121 per cent, was paid be'ore the capital was Increased by the capitalisation of part of shareholders’ funds compriied in various reserves and the distribution thereof to shareholders in the proportion of two new shares for every three old shares. “This increase in the amount paid to shareholders this year may assist in compensating them for the unfair demand for additional income tax which will be made upon them In respect of the capitalisation of their own money,” he said. Mr Watson said the proposed pay-out to shareholders, when related to total shareholders’ funds used in the business, showed a return of only slightly over 5 per cent., whereas taxation when related to the same basis amounted to more than 12 per cent, on such funds. Hugh J. Ream*.—Annual dividend of 5 per cent, is recommended.— Radio (1938), Ltd.—Annual dividend of Is a share payable September 1, ex-divi-dend August 22.—(P.A.) Farmers Walmate, Ltd.—Advise that issue of 50,000 ordinary £1 shares which closed yesterday morning was oversubscribed.—(P.A.)