Company News UNION STEAM SHOWS PROFIT FALL

Press, Volume XCVIII, Issue 28824, 19 February 1959, Page 17

Company News UNION STEAM SHOWS PROFIT FALL

A net profit of £ 1.04 m for the year ended September 30, 1958, is shown in the latest annual accounts of the Union Steam Ship Company, Ltd., which were presented to the annual meeting of the company in Wellington yesterday. This profit compares with • £ I.lBm for the previous year, which was double the figure for the year ended September 30, 1956. The latest profit is after the payment of unspecified amounts for taxation and depreciation on fixed assets.

The meeting approved the recommendation of the directors regarding appropriation of profits. A final dividend of 4 per cent, was approved for ordinary shares, making a total of 8 per cent, for the year. The total dividend for the year on the company’s preference shares was 5J per cent. A transfer to the capital reserve (tonnage replacement) of £650,000 was also approved, and £17,009 remains to be added to the amount brought forward in ‘he profit and loss account, bringing the total carryforward up to £749,000. The total payment in dividends was £320,000 on ordinary shares and £55,000 on preference capital.. For the last 10 years, the tax-paid profit averaged 4.8 per cent, of the capital employed , in the business. Chairman’s Report -

In his annual report to the meeting the chairman nf directors (Mr H. H. Dobie) said: “As anticipated, last year’s record financial result could not be maintained. Shipping is no exception in reflecting the reduced earnings of the nation. The import control system is having its effect on cargoes offering, but as the restrictions were effective for part of the year only, the full impact is not reflected in this year’s accounts. So far, three Vessels which normally trade in the Tasman, and two vessels which trade in the American-New Zealand-Australia service, are laid up temporarily. “During the year three vessels which had reached the end of their economic life were disposed of to Eastern buyers. Five new vessels were accepted from the builders, including the fully refrigerated vessel Tarawera, and all are proving successful in operation. The present building programme is nearing completion and in a month or two delivery will be taken of the final three vessels, all of which are to trade in Australian waters.” "Fairly Satisfactory”

In moving the adoption of the report and balance sheet, Mr Dobie said the year could be viewed as only fairly satisfactory. The net profit, while appearing to be large, was not adequate enough to safely ensure the replacement and expansion of the fleet now operating. While a major portion of the taxed profit was retained for this purpose the cost of shipbuilding was still rising and the company was re-

quired to resort to finance for new tonnage through shipbuilding bills to bridge the gap. It was essential that the ratio of profit should not only be main- 1 tained. but increased if the company was to serve its trades. Mr Dobie said that in view of shipbuilding prices still rising the depreciation allowarfce was insufficient to meet replacement costs in full. During the year the company was unfortunately required to lay up five vessels, two of which, each of 10,000 tons, were engaged in the Pacific trade i to America. Competition of| tramp vessels under other flags which operated on lower wage | scale and conditions than vessels registered and manned in New Zealand had forced the company! to lay aside the two large vessels until trading conditions improved. Reduction in trade in the Tasman accounted for the other three vessels. The increase in acreage of New Zealand-grown wheat in the South Island would reduce the quantity of wheat for importation from Australia and one vessel, previously engaged solely m wheat carriage, had already been withdrawn. Since the close of the financial year the trade situation had further deteriorated and it has been necessary to lay up more vessels. During the year 402,731 passengers and 2.6 m tons of cargo were transported. The distance steamed by the fleet I was I.Bm nautical miles, said Mr Dobie.

HOLEPROOF LTD. Take-Over Bid Accepted

(New Zealand Frees Association AUCKLAND, February 18.

More than 90 per cent of the ordinary shareholders of Holeproof Industries, Ltd., have accepted the offer by Factors. Ltd., of Melbourne, to take over their shares. The take-over bid by the Australian company has therefore been successful.

Mr Hilel Korman, joint managing director Of Holeproof Industries and also a director of Factors, said in Auckland today that shareholders would receive settlement as soon as they sent in their scrip. The take-over bid by Factors consisted of an offer of 25s (New Zealand currency! in cash, or alternatively, six 5s Factors shares (ranking for dividend after July, I 960! for each ordinary £1 Holeproof share. . The Reserve Bank of New Zealand originally refused its consent for the exchange of shares, but later approved the transaction provided - shareholders sold the Factors shares so received within six months and remitted the proceeds to New Zealand through the banking system. ?. ■The ordinary capital of Holeproof Industries is £750,000 in ordinary £1 shares. In addition there is £250,000 preference capital in 5 per cent, cumulative preference shares of £1 each. The acceptance of the take-over bid by more than 90 per cent, of shareholders was “quite satisfactory” from the point of view of the Holeproof board of directors, said Mr Hilel Korman. Many of those shareholders accepting the cash offer would receive a tax-free capital gain. Holeproof shares sold on the Auckland Stock Exchange today at 25s 6d, or 6d above their value in the cash offer. Three months ago, they were selling for 17s. Buyers at today’s closing market offered 25s Bd to sellers’ quotations of 28s.

Factor’s Plans

f jvz Press Association — Copyrfghtf MELBOURNE. February 18. Factors* acquisition of Holeproof Industries, New Zealand, follows its purchase of a 51 per cent interest in Bockmans Showrooms, Ltd., Melbourne, in a £l.sm cash deal last December. One of its current financial moves is the introduction of a hire purchase plan for share purchases, under which investors will be able to buy shares on instalments at a 61 per cent flat "to help finance itsi growing and widening range of activities. Factors is raising £lm by an issue of debenture stock carrying interest up to 84 per cent The company has the right to take over-subscriptions of another New Zealand company has 3500 retail outlets and directors say that the Factoring arrangements now operating in Australia can easily be adapted there.

NEW COMPANIES n o»in o «&2:«?? “sydenham Timber Company. Ltd. Private company, February 4, Fitagerald avenue. Christchurch. Capital: £7500. Subscribers: Christchurch, N. E. Cornyns 1515. B. W. Smart 1543. B. W. Loveridge 545. G. G. Loveridge 545, H. C. Smart and H. J. Brixton (jointly! 2764. Whangarei. L. A. Tait 588. Objects: Timher merchants, sawmillers, ana inUrban Investments, Ltd. Private company, February 5; 161 Hereford street, Christchurch. Capital: £lOO. Subscribers: Christchurch, H. M. Boyd 50, B. E. Smith 50. Objects: Capitalists, financiers, and incidental. Wibroc (New Zealand) Ltd. Private company, February 5; C/o Lake, Lake, Glynn and Smith, 146 Gloucester street, Christchurch. Capital: £3OOO. Subscribers: Christchurch, Alec Farrar, Ltd., 1470; Arncliffe, N.S.W., Wibroc Engineerin* Proprietary, Ltd. 1530. Objects: Manufacturers of and dealers, in motor vehicles, etc., and incidental. Sefton Securities, .Ltd- Private company. February 9; 6 Sefton street, Timaru. Capital: £2500. Subscribers: Timaru, J. P. O’Leary 100. R. H. Barnes 100, J. E. Keeley 100. M. E. A. Hervey 100, C. R. Hervey SOO. J. L. Garr 400, Hervey Motors. Ltd. 600. Brown Wood Motors Ltd., 600. Objects: Mortgage loan and finance company, and incidental. Timaru Hire Equipment, Ltd. Private company, February 10; 10 Woolcombe street, Timaru. Capital: £2500. Subscribers: Timaru. A. H. Ryder 1000. E. D. Mcßae 500. G. J. Walker 500. G. W. R. Stringer 500. Objects: Hirers of chattels and machinery and incidental. Venco Products. Ltd. Private company, February 11; C/o Southern Cioss Engineering Company, Ltd.. 121 MboriKHue avenue. Christchurch. Capital: £l2OO. Subscribers: Christchurch. W. J. R. Edlin 400, J. P. Goldsmith 400, W. G. Wilson 200. D. R. A.WoolfordSOp-Objecte: EM amhinlqy