HUME INDUSTRIES (N.Z.) YEAR

Press, Volume XCIV, Issue 28080, 22 September 1956, Page 14

HUME INDUSTRIES (N.Z.) YEAR

COMPANY NEU'S

PROFIT UP £5502 Net profit of Hume Industries (N.Z.), Ltd., manufacturers of concrete and steel pipes, etc., Wellington increased slightly by £5502 to £65.546 m the year ended June 30. The profit was struck after provision of £ 2750 more for taxation at £66.500 and £23,234 more for depreciation at £65,151. As previously announced, the aiyidend on ordinary shares (all of which are held by the parent company. Humes, Ltd., of Melbourne) has been increased from 5 to 10 per cent. The payment requires £40.000. The 5 per cent preference charge again takes £12,500. An unchanged amount of £15,000 has again been set aside for amortisation of the asbestos mine at Takaka and the carry-forward is reduced from £39.255 to £37.301. The balance-sheet shows an increase of £91.504 to £230.687 in bank overdraft and a rise of £26.783 in stock. The value of land, buildings and plant has risen by. £146,103 to £562,j86. Tn their report, the directors say that general expansion of the company’s activities continued during the year and, to meet the requirements of the Auckland Metropolitan Drainage Board, a new concrete pipe factory was established at Papakura and commenced operations last March. Sub - stantiaJ additions were made to the steel division factory at Onehunga. The directors says that, in their report last year, the potential effect on the company’s operations of any inability by local bodies to raise their loan requirements was discussed The • company s experience had been that, although raising of loan moneys by local bodies was a very slow process, the trading of the company was nevertheless not apparently affected during the year

£50,000 SHARE ISSUE MERCER INDUSTRIES OFFER J. Mercer Industries. Ltd., incorporated last year as a holding company, is offering at par 50.000 £1 54 per cent, cumulative preference shares, participating to 61 per cent. The Brincipal subsidiary is J. Mercer and ons, Ltd., sheet-metal workers and stainless Steel fabricators, the business founded in Christchurch in 1884 by Mr James Mercer. . The object or the issue is to provide additional working capital- for the operating company. Payment is to be made in full on application, and the dividends will be free of social security tax not exceeding Is 6d in the £. Underwriters to the issue—who have taken 20,0.00 shares firm—are Daysh, Renouf and Freney. Application is to be made to the Stock Exchange Association for official listing of the preference capital including the 29,000 cumulative participating preference shares already issued. Ordinary capital issued consists of 120,000 £1 "shares. In his report to the underwriters, the managing director (Mr J. Mercer) says that in the past the directors’ policy has been to distribute about half of the tax-paid profits of the company by way of dividend. “Provided trading continues at or above the result'- of last year, the directors should be able to maintain a dividend of .10 per cent 7 This would mean that preference shareholders would gain their participation to 64 ner cent. ,thus obtaining the greatest possible benefit from their investments.* Net tax-paid profit for the year ended February over the last six years is given in the prospectus as follows: 1951, £12,119: 195£ £14,152; 1953, £17,128; 1954. £17,826; 1955, £24,197; 1956, £31,402.

LOWER PROFIT FOR GEORGE COURT (New Zealand Press Association) AUCKLAND, September 21. Net profit of George Court and Sons, Ltd., Auckland retailers, declined further by £2486 to £11,906 in the year ended July 19. In the previous year, there was a reduction of £7474. The directors say that the business' of the company—in common with others in the Karangahape road area—has been adversely affected by the Auckland Transport Board’s rearrangement of traffic routes for the time being. A long drawn-out summer had an adverse effect on the sale of winter goods, and the credit squeeze limited hire purchase trading. Dividend has been maintained at the previous year’s reduced rate of 6 pe^cent ’ and requires £15,000. , Th o e n^ net proflt fails to cover this by £3094 and, after writing off £351 underprovided for taxation in 1955 £®,o« r tr£79 a 6lB. iS redUCed fr ° m POLICY OF TOPPA ICE UNDER REVIEW (New Zealand Press Association) rj.. . . AUCKLAND, September 21. lhe chairman o. Tip Top Ice Cream Company (Auckland), Ltd. (Mr A. EL Hayman) will fly to Melbourne this weekend to discuss with the directors of the SL’SE™ 5 ' S t • J Me . I . bo . ur >>e affiliate. Toppa Holdings. Ltd., the future policy of Toppa. of Chairman directors directors were considering ways of n r J? g i lng t} l e b °ard oi Toppa quickly to a policy of consolidation and dividend ” Already Toppa was widely afield, from Tc. mania and South Australia to Bento??; tn sSih® 8 bein £ a major manufacln Melbourne, he said. w . as i cau smg Tip Top directors some anxiety They felt that Toppa could bes. serve its shareholders by concentrating on existing business, forgoing the growth attrac!lve opportunities for furthe?