Company News FLETCHER’S PROFIT

Press, Volume XCVIII, Issue 28926, 20 June 1959, Page 11

Company News FLETCHER’S PROFIT

Rise Of £9114 To £287,180

(New Zealand Press Association) AUCKLAND. June 19. Consolidated net profit of Fletcher Holdings, Ltd., Auckland, and its subsidiaries rose by £9114 to £287,180 in the year ended April 30. The earning rate of the net results on ordinary shareholders’ funds remained unchanged at 7.4 per cent. Group turnover for the year declined by £106,929 to £15,434,305.

The latest net profit was reached after provision of £2616 less for taxation at £291,031 and £54,093 more for depreciation at £386,804. In addition to the consolidated net earnings, surplus tax of £13,022 (£17,015 in the previous year) has been written back, and capital profits amounting to £27,574 (£43,828) have been brought into the accounts. After these additions total net consolidated income stands at £327,776, compared with £338,909 last year.

As was previously reported, ordinary dividend has remained unaltered at 10 per cent, and requires £220,000. Dividends of 6 per cent, on preference shares, 5 per cent, on redeemable B preference shares, and 5 per cent, of C preference shares absorb £40,500 Clears Dividends

The net profit clears these dividend requirements by £26,680. A total of £67,276 is retained in the business, against £78.409 in the previous year Balance-sheet figures show that profits retained in the business and other reserves increased by £69,187 to £1,672,713 during the year. The directors state that this increase has mainly arisen from retained profits. Fixed loans expanded by £25.613 to £1,003,928 and comprise £563,928 in mortgages and £440,000 in 51 per cent, registered unsecured convertible debentures.

Creditors contracted by £64,332 to £ 1,139,256, while bank overdraft was £91,013 lower at £1,804,622. Fixed assets showed a rise of £191,434 to £3,278,912. Investments were £140.580 higher at £1,549.622.

Stocks declined fairly sharply by £273,584 to £1,997,640. Contracts in progress were £100.293 below the 1957-58 figure at £1,073,885. Debtors declined slightly by £9939 to £1,165,179.

NORTHERN STEAM PROFIT Record £50,223 For Year (New Zealand Press Association) AUCKLAND, June 19. The Northern Steam Ship Company, Ltd., Auckland, lifted net profit to a record £50,223 in the year to March 31. Profit last year was £36,503.

Net profit last year included £7261 from sale of assets but this year’s profit includes only £124 from sale of assets. The chairman (Mr E. H. Rhodes) says in the directors’ report that the profit has been assisted substantially by revenue from valuable agencies the cqjnpany holds. Operation of these agencies has shown a steady improvement over the year and now represents a material proportion of the company’s operations.

As announced in April, the company proposes a reconstruction of capital in which the existing shares of 12s will be converted into shares of 10s. One-for-Nine Issue

As part of the reconstruction the. company, after dividing the existing shares, will make a one-for-nine script issue by capitalising a £27.641 reserve created by revaluation of the company’s nroperty in Quay street, Auckland.

The effect of the proposals will be to increase shareholders’ interests by Is 4d for each existing 12s share.

This year’s result is after tax provision of £52,103 (£39,371 last year). Genera] reserve is credited with £25.000 (nothing last year) and dividend reserve with £13,000 (£20,000).

Dividend, increased from 6 per cent, to 9 per cent, by addition of a 3 per cent, bonus, tafles £22.389 (£14,926).

Appropriations exceed net profit by £10,166 and carry-forward is reduced to £18,455.

Gross profit, commissions and rents increased from £175,168 to £222,128. General expenses increased from £53.434 to £77,920. The balance-sheet shows elmination of an overdraft which stood at £49,173 at the previous balance date.

Charles Begg Makes £68,643 Profit

(New Zealand Press Assoctatton) DUNEDIN, June 19.

Net profit of Charles Begg and Company, Ltd., for the year to March 31. 1959. was £68,643 compared with £66,068 last year. This result is after providing for depreciation. £35,753 (£38,713) and taxation. £93.200 (£98,776). The proposed dividend of 12-5 per cent., plus bonus dividend of 2£ per cent., on ordinary and staff shares takes £28.500 (£25,500).

Transfers to reserves are: general reserves, £20,000 (£4000); dividend reserve, £ 7750 (£10,000); from subsidiary companies to general reserves, £6OO (£10.000). The balance to be carried forward is £77,024 (£69,772).

Myer Emporium.—Final preference dividend is 4 l ,fe per cent., payable July 23; ex div., July 2.—(P.A.) R. and E. Tingey.—Final preference dividend is 3 per cent., payable June 30. ex div., June 25. (PA.) Gisborne Merger.—The Gisborne branch of the Hawke’s Bay firm de Pelichet, McLeod and Company. Ltd., will be merged with the Gisborne Sheep Farmers’ Frozen Meat and Mercantile Company. Ltd., on July 1, it was announced today. The Gisborne manager of de Pelichets, Mr I. C.. Davis, will retire shortly. He has held the post since the branch was opened in 1922.