SHARP RISE IN PROFIT

Press, Volume XCVIII, Issue 29004, 18 September 1959, Page 13

SHARP RISE IN PROFIT

Ross And Glendining Accounts ‘Consolidated net profit of Ross and Glendining, Ltd., manufacturers and warehousemen, Dunedin, rpse £57,568 to £129.698 in the year ended July 19. This is the biggest profit shown by the company for seven years, and represents a substantial recovery since 1953, when the profit of the parent company fell to £40,783. The consolidated profit was reached after providing £2335 less for depreciation at £56,236 and £40,895 more for tax at £136.580. Group gross profit rose from £952,835 to £1,041,015, while dividends from other companies brought in £12,540 against £654 last year. Costs fell from £681,636 to £678,480. 'The parent company recorded a’ net profit of £140,565 against £81,914 last year. With £114,238 brought in from last year, plus a tax adjustment of £3840 it has £258,643 available. Dividend Raised

Dividend, raised to 5 per cent., takes £83,125 against £66,500 last year. Two subsidiaries, Sacony (N.Z.), Ltd., and Fleur Fashions, Ltd., ran at a loss and this has been provided for by deducting £11,947 from the profit and loss appropriation account. Carry forward is £163,571. In the consolidated accounts, bank overdraft is £146,734 lower at £394,734. Trade creditors are up from £227.568 to £236.985. while bills payable have been reduced from £206.848 to £123,685. Total current liabilites are £951.379 and are matched bv current assets of £3.414,488. Stock fell from £2,725,584 to £2,751,069. Debtors Are down from £67,282 to £662.918. Disposal of Wanganui and Napier properties and the sale of surplus cars resulted in a capital profit and a capital profits account has been opened with £23,642. Share premium accounts remains at £267,188. General reserve is also steady at £673.000. Fixed assets have been Increased from £707.139 to £712,973, although tbey are subject to £387,684 owing to secured creditors. RESERVE RATIOS RAISED (New Zealand Press Association) WELLINGTON, September 17. The Reserve Bank of New Zealand announced yesterday that the reserve ratios of the trading banks would be increased, with effect from September 21, from 28J to 30 per cent, of demand liabilities. With no change in the ratio of 10 per cent, for time liabilities. The bank explained that a rise in * the trading banks’ balances at the Reserve Bank was occurring, and the increase in the ratios would merely mop up surplus cash without any change in policy being involved. The current policy is to hold bank advances steady, apart from normal seasonal changes, and the reserve ratios are being adjusted accordingly. MT. ISA PROFIT INCREASED fN.Z Press Association —Com/rtghti BRISBANE, Sept. 17. Mt. Isa Mines, Ltd., report a much-increased group net profit of £4,030,722 in the year to June 30 last. The company will pay a final dividend or 9d a 5s stock unit in cash to maintain the year's total at > a heavily-covered Is 3d (25 per Cent.).

The latest year’s dividends are all m cash. The previous year 7Jd of the dividend was In the form of a one-for-eight scrip issue, and in 1956-57 6d of the total was in a one-for-10 issue:

Today’s preliminary statement shows group profit for the first time. It compares with the previous year’s £2.498,533. The record profit shown by the company was the parent company figure of £4,301,931 in 1955-56.

Briscoe’s Dividend.—Briscoes. Ltd., Australian and New Zealand wholesale hardware and iron and steel merchants, will pay an ordinary div’dend of 7 per cent, for its first year on the public list. This is in line with prospectus estimates. Consolidated net profit for the year to June 30, subject to audit, was £A97,957 after £ABo,9oofor tax and £A334,92 for depreciation. It compares with a prospectus adjusted profit of £A119,530 in 1958-59. The 7 per cent. dividend absorbs £AIO,OOO. Final dividend of 3J per cent, will be paid on October 16. Books close October I—Melbourne, Sept. 17.