COURT RESTORES DIVIDEND

Press, Volume XCVI, Issue 28447, 29 November 1957, Page 21

COURT RESTORES DIVIDEND

F.C.A. Preference Payments

"The Press’ - Special Service HAMILTON, November 28.

The restoration of a dividend rate of 6 per cent, on the cumulative preference shares of the Farmers’ Co-operative Auctioneering Company, Ltd., was authorised by an order made in the Supreme Court at Hamilton yesterday by Mr Justice Turner. The order accomplishes this by providing relief from the operations of Clause 41 of the National Expenditure Adjustment Act, 1932. The shares affected are 100,000 A issue cumulative preference shares and 153,212 B issue cumulative preference shares. The 46.788 unissued B cumulative preference shares could also receive the higher dividend if they are issued. The order provides that if in any year the dividend payable to ordinary shareholders should be less than 5 per cent, the dividend payable to preference shareholders should be 5 per cent. .It is probable that the company will pay out the increased rate at the interim preference dividend on February 1, 1958.

The action was brought before the Court by George Ivan Clark, of Hamilton, a preference shareholder in the company, who petitioned on behalf of the 15 per cent, of preference shareholders needed to bring the action. They were represented by Mr H. C. M. Norris. Mr Warwick Gray appeared for the company, which did not oppose the application. Manawatu Knitting Mills (New Zealand Press Association) WELLINGTON, Nov. 28. Net profit of the Manawatu Knitting Mills. Ltd., for the year ended October 19. was £10.804. compared with £9317 for the previous year. This figure was reached after providing £8520 for taxation (£8326 last year) and £9058 for depreciation (£9259). Knitex, Ltd., the company’s fully-owned subsidiary, was amalgamated with the parent company on October 19. 1957, and the accounts of the companies have been combined. In 1955 the consolidated profit was £11,349, and in 1954 £13.612.

The unchanged 15 per cent, dividend will take £6750. Reserves, which received nothing in 1956, will get £18,149. and the carry-forward will be £29.434, against £43.529 brought in from 1956. Paid capital remains at £45.000. Shareholders’ funds totalled £184.434 (£168.529). Current assets are £227.513 (£198.788). current liabilities £110.453 (£108.684), and fixed assets £60.011 (£45.875). The directors say that modernising of the plant and buildings has placed the company on a competitive footing with United Kingdom imports, so that it has little to fear from that source.

During the year, stocks have risen as a result of the operation of additional plant and increased demand for the company's products.

N.Z. Farmers’ Fertiliser.— Fertiliser production has been reduced by the New Plymouth works of the New Zealand Farmers’ Fertiliser Company, Ltd. This is a result of the continued bad weather during the last six to eight weeks, which has caused a reduction in orders. New Plymouth merchants, however, say that fertiliser consumption for the period from March 31 last is si ill ahead of that for the corresponding period for last year. . "Orders in July, August, and September were phenomenal,” said one merchant.— (P.S.S.)

Rubber Distributors.— Rubber Distributors, Ltd.. Wellington, advises that the 6 per cent. A preference and 5 per cent. B preference dividends for the year ended March 31,.. 1955, will be paid shortly before the end of the year to shareholders registered on December 5. Payment was authorised at the last annual meeting, "when finance permits.” The last ordinary dividend was 3 per cent, for the year ended March 31, 1948. This was not paid until 1954.