BALLINS’ 26 P.C. RISE IN PROFIT

Press, Volume XCIX, Issue 29390, 17 December 1960, Page 16

BALLINS’ 26 P.C. RISE IN PROFIT

Earnings From Other Companies

Consolidated net profit of Ballins Industries, Ltd., wine and spirit merchants and cordial manufacturers, Christchurch, rose £18,535, or 25.8 per cent., to £90,450, in the year ended September 30. The previous year profit rose £14,381. The latest profit is reached after provision of £36,023 (down £187) for depreciation and £71,487 (down £8981) for taxation After deducting minority interests, it represents an earning rate of 6.7 per cent, on average shareholders’ funds, compared with 6.9 per cent, the previous year. The minority interest in the profit rose from £2520 to £4478. Ordinary dividend, as announced earlier, was raised from 8 per cent, to 9 per cent, on capital increased by a one-for-two bonus issue. This requires £60,750, compared with £36,000 last year. The 5 per cent, preference requirement is again £3750. The allocation to dividend equalisation reserve is reduced from £60.000 to £5OOO. Net profit, after deduction of minority interests and preference dividend, represents an earning rate of 12.2 per cent. (14.7 per cent, last year) on ordinary capital. Appropriations total £69,500. With £2733 over-provided for tax the previous year, Carry-forward is raised £19,205 to £95,934. Directors report that “with our spread of interests in our subsidiary companies, associated companies, and investments in other companies, we have now reached the stage where approximately 50 per cent, of our profit is derived from these sources. Sales of Spirits

“The trading position in the parents company has been well maintained although the volume of spirit sales during the year has been governed by stock availability,” state the directors. “With the increase in spirit import licences for 1961 this position will be considerably improved,” they add. In the consolidated accounts the gross profit from trading was steady at £339,315 (£339,416). Dividends and interest from all sources rose £10,566 to £24,564. Total expenses, including depreciation, were steady at £201,932 (£201,021). Net profit from trading was up £9554 at £161,947.

Paid capital was raised to £750,000 (of which £75,000 is in redeemable preference shares) by the issue of £225,000 in ordinary shares. Shareholders’ funds are £86,818 higher at £1,265,513; capital reserves fell from £410,950 to £246.605.

Total fixed assets are £1,203,774 (£1,255,441), and total fixed and invested capital £1,222,004 (£1,067,382). Total current assets are up £95,163 at £490,723, and current liabilities up £164,928 at £488,382.