Company News NORTHERN ROLLER MILLING

Press, Volume XCVIII, Issue 28984, 27 August 1959, Page 19

Company News NORTHERN ROLLER MILLING

Higher Profit Reported

(New Zealand Press Association) L AUCKLAND, August 26. | ( Consolidated net profit of the 1 Northern Roller Milling C4>m-h pany, Ltd., Auckland, and its sub- i sidiary, Fleming and Company, j Ltd., Christchurch, recovered to £43,703 in the year to February j 28. Last year profit fell from i £53.905 tp £31,498. The latest result is after tax provision of £44.273 (£36,253 last < year) and depreciation provision? of £52.863 (£44.040). Last month shareholders were'i advised that the accounts were? delayed because the company was , awaiting Cabinet approval of the result of negotiations with the , Price Control Division. The com- ( pany said in a circular letter that , the flourmilling industry had concluded satisfactory negotiations on a substantial sum with which it was debited for the years 1956 and 1957. The amount claimed from the company was shown in last year’s balance-sheet as a contingent liability of £14.837. “Satisfactory Settlement’’ The chairman (Mr J. B. Donald) says in this year’s directors’ report that this contingent liability has now been settled satisfactorily. Mr Donald adds: “Directors now optimistically look forward to a period during which more favourable decisions by the price-fixing authority may be expected.” Group trading profit increased from £111,929 to £145,958, but other income was reduced from £3383 to £2160. Preference dividends and ordinary dividend, steady at 8 per cent, take £34,500. and carry-for-ward is increased from £161,354 to £172,363. The consolidated balance-sheet shows an increase in book value] of fixed assets from £731,552 toj £878.070. Investment of £84.4771 in Government Stock has been, eliminated. Sundry creditors have increased from £21,173 to] £90,046. Bank overdrafts have] been reduced from a total of j £250,508 to £208,991. The surplus of current assets, over current liabilities is £120,485. compared with £163,583 last year. BID BY H. C. SLEIGH Adelaide Steam Rejects Offer Directors of Adelaide Steamship Co. Ltd., have rejected a second takeover bid from H. C. Sleigh Ltd. and will now make a bonus issue on the basis of one-for-two held—the first capital move since 1920. Directors expect to pay dividends of 10 per cent, on the higher capital. This would be equivalent to 15 per cent, on present capital. Dividend for the year ended June 30 has been raised from 7 to 10 per cent. The highest previous dividend paid by the company since it was reconstructed nearly 40 years ago was 8 per cent, in 1927. Directors have announced details of the two offers from H C. Sleigh Ltd., and stated they ] had rejected both. j The first—made on August 12— was 3A Sleigh 5s ordinary shares for each Adelaide Steamship share. A week later. H. C. Sleigh increased the offer to four Sleigh shares and added an alternative cash offer of 755. The second bid, which is worth 82s a share on Monday’s J market price of 20s 6d for H. C. i Sleigh, is open until September 15 and requires acceptance from holders of 90 per cent, of Adelaide ; Steamship's capital, or such lesser amount as H. C. Sleigh may 1 accept. Comment on Decision “Having declared a profit rate ! on capital ranging between 5 and 7 per cent for each of the last i ten years, Adelaide Steamship > now announces it will, in effect. . pay 15 per cent, dividends hence- ' forth on the equivalent of the present capital,” says the financial editor of the “Sydney Morn- ’ ing Herald,” commenting on the decision of the Adelaide company. i “Shareholders who have, and 1 those who haven’t sold shares in ; Adelaide Steam over that time , may ask what sort of confidence • they can have in a board that has misled them so." ; NO BID FOR PAPER MILLS

No takeover bid has been made for New Zealand Paper Mills, Ltd., said the general manager of the company, Mr G. R. Couling yesterday. Mr Couling was asked to comment on rumours of a bid having been made. The company’s shares have risen from 31s 3d to 47s 6d since early February this year. Last year’s sales were made at 28s 9d to 30s 6d.

Sydney Stock Exchange Chairman Dead

(N.Z Press Association—Copyright) SYDNEY. August 26. The chairman of the Sydney Stock Exchange (Mr Lionel McFadyen) died in Sydney last night. He had been ill for some time. He was president of the Australian Association of Stock Exchanges and chairman of the Sydney Exchange since 1956. He was aged 51. He leaves a widow, two sons, and two daughters.