BURNS PHILP BONUS

Press, Volume XCVIII, Issue 28896, 16 May 1959, Page 16

BURNS PHILP BONUS

One For Five Issue Burns, Philp and Company, Ltd., will make a bonus issue later this year of 1,000,000 20s ordinary shares on the basis of one-for-five held. The company also reports a rise of £253,784, or 43.7 per cent., in net profit at £833,906 for the year ended March 31. The bonus issue will be made out of a revaluation of assets reserve. This reserve stands in the accounts at March 31, at £212,979, the amount apparently remaining after last year’s bonus capitalisation of £1 million. The proposed bonus issue will raise paid capital to £6 million. The result was reached after much lower provision for depreciation—£297,4BB (down £194,507) —and, as usual, unstated tax. Other provisions were staff provident fund £30,405 (up £2360), tonnage replacement £450,000 (unchanged) and property replacement £50,000 (unchanged). The steady 10 per cent, dividend requires £500,000 on capital increased by last year’s bonus issue. General reserve gains £200,000 (up £50,000), leaving carry forward £133,906 higher at £507,700. Gross profit increased by £186,708 to £3.067,207. , , General working expenses, Including wages and tax, were £124,613 higher at £1.403,908. “Intensive Competition’’ Merchandising, both wholesale and retail, had to contend with intensive bompetiiton and rising costs, directors state in the annual report. This necessitated considerable capital expenditure on modernising premises Snd on facilities for improved service and efficiency. The result was a larger volume of sales. The balance-sheet discloses a rise of £2,000.000 to £8,400.000 in investments in shares of other companies. loans and Government securiitems rose £88,171 to £374,972, while overdraft was £24,528 nigher at £40,665. Total debtors increased £363.258 to ttMW and total creditors increased £310,440 to £2,746,407Stocks were £132,577 higher at £1,371,662. Taniwha Products.—No Interim dividend is recommended this year. No interim dividend was paid last year, but a final dividend of 5 per cent, was paid.—(P.A.) Donaghy's.—A final dividend of Is 6d per share (making 2s or 10 per cent., unchanged, for the year ended March 31. 1959) will be recommended bv the directors of Donaghy s R ope and Twine Company. Ltd., at tne annual meeting.—(P.A.)