Company News J. J. McCASKEY YEAR

Press, Volume XCVIII, Issue 28938, 4 July 1959, Page 16

Company News J. J. McCASKEY YEAR

Profit Falls 61 Per Cent,

(New Zealand Press Association) WELLINGTON, July 3. Consolidated net profit of J. J. McCaskey and Son, Ltd., Wellington, fell £18,308, or 61 per cent., to £ll,BBl in the year ended March 31, 1958. ♦ • The company manufacturers waterproof clothing, industrial clothing, camp furniture and canvas goods. Directors say that the main cause- of the reduction in profit was a loss of £6007 suffered by the distributing company, Relax, Ltd. Steady dividends of 5 per cent, are proposed on ordinary and preference shares and will require £lO,OOO from the parent company’s accounts. The ordinary dividend will be charged to the assets realisation account, and will not be subject to dividend tax in shareholders' hands.

Consolidated profit is reached after provision of £6467 (up £27) for depreciation and £440 (up £205) for taxation. A sum of £4150 is brought into the profit and loss account from general reserve, and £ 14,802 from capital reserve. Capital Dividends Capital dividends, received amount to £2961, and surplus tax provision to £lB. With the net profit this makes a total of £33,812, from which is to be deducted the debit balance of £28,228 brought forward. This leaves £5584, of which the preference dividend takes £5OOO. Carry-forward is £584. During the year, the capital of Relax, Ltd., was reduced from £lOO,OOO to £50,000. The preference shareholders were repaid their 20s a shave in full and an offer made to ordinary shareholders was accepted. Relax is now a wholly-owned subsidiary. Paid capital of J. J. McCaskey and Son is £200,000 including £lOO,OOO preference. Shares held, by the subsidiary company amount to £19,741. Reserves total £131,334, making shareholders* funds £311,593.