ACCOUNTS OF ROSS AND GLENDINING

Press, Volume XCIV, Issue 28089, 3 October 1956, Page 17

ACCOUNTS OF ROSS AND GLENDINING

NET PROFIT NEARLY HALVED

Net profit of Ross and Glendining, Ltd., softgoods manufacturers and warehousemen, Dunedin, was nearly halved in the year ended July 19, falling from £119,434 to £59,789. The result was equal to an earning rate of 2.04 per cent, on shareholders’ funds, compared with 4.27 per cent, in the previous year. The directors attribute the setback to the credit squeeze, which hampered the purchasing power of retailers, and to heavy importations of woollen and worsted piecegoods. The latest result was struck after tax provision of £59.500 (down £60,500 from 1954-55), depreciation of £56,673 (down £6389), and a contribution to the staff fund of £29.000 (down £3930). In addition to the net profit, surplus tax of £lB5 (£lB6O in the previous year) has been written back into the appropriation account. As previously announced, dividend has been reduced from 8 per cent, to 6 per cent, on a slightly higher capital. It requires £99,750, which exceeds the net profit by £39,961. After allowing for the surplus tax, the carry-forward is reduced from £168.171 to £128,385. Gross earnings, including an unspecified dividend from the subsidiary company, Clifton Knitwear, Ltd., declined by £130,025. or 13.6 per cent., to £826,188. Expenses, apart from taxation, depreciation and the staff fund contribution, rose slightly by £439 to £621,226. Sales showed a decline of 8 per cent., state the directors, "which, in all circumstances, is reasonably satisfactory.” The partial restoration of import licensing on woollen and worsted piecegoods might be of benefit to the Roslyn mills, which were a dominant factor in the company’s operations. Because of the prevailing conditions, the board concentrated on a policy of restricted stock buying and consolidating the financial position of the company by reducing stocks and bank overdraft. The balance-sheet shows a reduction in stocks of £363,863 to £2,659,840—a decline of 12.0 per cent., while bank overdraft was lowered by £542,821, or 55.8 per cent., to £430,598. British Tobacco.—The quarterly preference dividend of 18 per cent, is payable on October 31.—(P.A.) Smith and Smith.—A final dividend of 6 per cent., payable on October 15, is recommended, making Bi per cent, (unchanged) for the year.—(P.A.) Williamson Jeffrey.—Recommended final dividends, payable on October 24, are 3 per cent, ordinary (making 6 per cent, unchanged) and 2i per cent, preference (making 5 per cent.). B.H.P.—lnterim dividend is 5 per cent., or Is a share on old shares and 8d a share on the new (13s 4d paid) shares. A total payment of 10 per cent, was made last year.— (P.A.). Humes Dividend.—lf costs of Humes. Ltd., Melbourne, continued to rise and company tax was not reduced, the rate of ordinary dividend to be declared from 1956-57 would have to be carefully considered, state the directors in their annual report. A steady volume of contracts and orders, however, was in hand, and prospects were satisfactory. Mercer Industries Issue.—The preference issue offered by J. Mercer Industries. Ltd., closed on Monday heavily over-subscribed. The company offered at par 50,000 £1 51 per cent, cumulative preference shares, participating to per cent The underwriters took 20,000 shares firm.

North Broken Hill.—Net profit of North Broken Hill, Ltd., increased slightly by £14,202 to a new peak of £2,025,297 in the year ended June 30. The profit was reached after provision for tax and royalties of £1,282,500 (an increase of £208,500 from 1954-55), provision for new plant of £430,000 (a decrease of £170,000) and unchanged depreciation of £lOO,OOO. As previously announced, dividend for the year is 10s 6d a 5s share, equivalent to 210 per cent. In the previous year the payment was 9s, or 180 per cent. The latest payment requires £1,470,000, which the net profit clears by £555,297. The final dividend of 6s 6d a share, Australian currency, is payable on November 28. Shares become ex dividend on October 16. MINING Clutha Dredge.—The return for the week ended September 28 was 118 hours worked, 65 ounces recovered.—(P.A.)