Company News ROTHMANS’ SALES INCREASE

Press, Volume XCVI, Issue 28450, 3 December 1957, Page 19

Company News ROTHMANS’ SALES INCREASE

Demand For “King Size” Cigarettes Rothmans of Pall Mall (Aust.), Ltd., has increased its sales to a yearly rate of more than £l2 million, a rise of £4m a year since last May, the annual report states. The increase has cost the company about £lOO,OOO.

The swing to “king size’* became so marked that it was decided to go after the market’s full potential, the chairman, Mr R. A. Irish, says in his review. This involved uneconomical production costs and was a deliberate sacrifice of profit. The result has been that far higher profits are now being earned on the increased turnover. Production is more than double that of a year ago and still expanding. Bentefits from extensions to factory and plant were not fully available until September. Loss of £222,362 Accounts for the year ended June 30 show a loss of £222,362 after depreciation £46,762 and interest £68,943. The interest charge is in part related to capital expenditures

from which full benefit began only in the current year. Including loss of £196,220 incurred for 1955-56, the company’s first trading year, debit balance is £418,582. This is placed to establishment account and will be written off from future profits over a reasonable period. A net profit of £37,832 has been earned for the four months ended October 31. Profit Rate Profit rate on present sales volume is expected to continue at not less than £20.000 a month, after charging interest, advertising and all other costs, Mr Irish says. Balance-sheet movements include: Freeholds and plant, £757,636 iup £289,702); stocks, £722,454 (up £328,006); debtors. £281,882 (up £208,961); overdraft, £389,613 (down £9191); creditors, £628.005 (up £532,187); and amounts due to associated companies, £589,247 (up £515,799). Directors intend to review the company’s financial structure, having regard to the enlarged scale of business. Australian shareholders will have the opportunity to retain their 50 per cent, interest. BANK OF N.S.W. PROFIT DOWN First Fall In 13 Years The Bank of New South Wales made .a net profit of £1.698.673. a fall of £81.360. for the year ended September 30. This represents a fall of 4.6 per cent., compared with a similar rise in 195556. The slight decline follows 12 successive years of rising profits. The earning rate on capital is 9.7 per cent. Dividend, steady at 9 per cent., absorbs £1,580.400. No transfer is made to reserves, compared with £652,500 in the previous year. Carry-forward is £118,274 higher at £898,254. Consolidated profit of the bank increased by £13,072 to £1,830,240 for the year. This includes £131.567 earned by the Bank of New South Wales Savings Bank, Ltd., in its first full year. In the previous nine months this subsidiary had shown a profit of £37,135. Westland Breweries.—Annual dividend is an unchanged 12J per cent., ex December 12.—(P.A.) Bond’s Hosiery.—Mr William Forsyth, general manager of the company since its inception, has been appointed to the directorate to fill the vacancy caused by the death of Mr Stronach Paterson.—(P.A.) A.N.Z. Bank Conference.—A conference of accountants of Australia and New Zealand Bank, Ltd., at which various aspects of branch organisation, procedure and systems will be considered, opened in Auckland yesterday. It will last for one week and will be under the direction of Mr M. P. Hirtzel, the bank’s procedure and efficiency officer for New Zealand. Sydney Truth.—Net profit of “Truth” and “Sportsman,” Ltd., rose £25,600, or 25.3 per cent., to £135,566 for the year ended June 30. The result is after depreciation £108,315 (up £26,480) and undisclosed tax. Ordinary dividend is steady at 8 per cent., and absorbs £24,000. Preference dividends require £32,000. Reserve gains a steady £40.000, and, after adding'a steady £12,000 to' debenture sinking fund, carry forward is £17,566 higher at £201,297. Wellington Customs Return (New Zealand Press Association) 1 WELLINGTON, December 2. Customs revenue in Wellington during November totalled £2.647,223, an increase of £280,583 over the November. 1956. total. Main items, with corresponding figures for the same month last year in parenthesis. are:— Customs. £1.217.799 (£1.087.223); sales tax. £1,089.238 (£947.607): petrol, £245.171 (£232,358); cars. £443 (£399); total, £2,647,223 (£2.366,640). Auckland Revenue Up (New Zealand Press Association) AUCKLAND. December 2. Revenue collected by the Customs Department in Auckland during November totalled £2.464,957, against £2.415.507 in November, 1956. Details are:— Customs. £1,064.145 (£934.397); petrol, £479,412 (£565.454); tyres. £1139 (£907); sales tax, £591422 (£584.745); other duties, £328,857 (£330,004). z Total collections for the 11 months of the year are £23,698,212, against £23,090,762.

Esanda Note Issue.—Esandh, Ltd., hire-purchase subsidiary of the E., S., and A. Bank, Ltd., has announced an issue at par of registered unsecured notes. Proceeds are to be used to finance further expansion. Interest will be 62 per cent, for 10 years, 6J per cent, for five years, 6 per cent, for four years, and 5 3 ,« per cent, for three years. E. L. and C. Baillieu, lan Potter and Co., both ■members of the Stock Exchange of Melbourne, and the Anglo-Austra-lian Corp. Pty., Ltd., have underwritten £500,000 of the 10-year notes.