K.P. DRUGS

Press, Volume C, Issue 29474, 28 March 1961, Page 19

K.P. DRUGS

Profit Rises 31 Per Cent.

Kempthorne Prosser and Company’s New Zealand Drug Company, Ltd., Dunedin, shows a rise in net profit of £60.058, or 30.6 pgr cent., to £256,290 for the year ended January 31. This follows a rise of £50.903 the year before and is £31,689 more than the previous peak net profit of £224,601 in ,1955.

The latest profit is equal to an earning rate of 9.07

per cent, on shareholders’ funds. Shareholders’ funds have been increased during the year from £2,157,626 to £2,812,196, mainly through writing up of land and buildings and creating a land and buildings appreciation reserve of £539,023.

The net profit was struck after tax provision £60.061 up at £256,294 and depreciation £22,523 down at £117,080. Dividend is unchanged at 11J per cent., including bonus of 1J per cent. It requires £138,616. Reserves Transfer to general reserve is unchanged at £50.000 but an additional transfer has been made this year of £65,000 for investment in the newly formed Northland Fertiliser Company, Ltd., in which the company is a joint owner with New Zealand Farmers’ Fertiliser Company, Ltd., and Challenge Phosphate Company, Ltd. A transfer of £55,000 will also be made from the building reserve to investment in the new company.

The gross profit for the year was £1,108,002, an increase of £121,863. Expenses were £24,919 higher at £378,525. In a note to the accounts the directors state that the land and warehouse buildings have been written up to Government valuation. The works buildings have been written up to half Government valuation. The total appreciation in the value of land and buildings, £539,023, has been credited to a land and buildings appreciation reserve. There are contingent liabilities for capital expenditure estimated at £52,751 and on shares in Northland Fertiliser Company, Ltd., of £30,000. Bonus Issue Since the end of the financial year the company has proposed a bonus issue of one-for-four and the splitting of the present £2 shares into £1 units. These proposals will be put before shareholders at an extraordinary general meeting on April 12.

Pye and Electronic Industries.—Pye, Ltd., England, does not and has never intended to control or influence the policy of Electronic Industries. Ltd., Melbourne, in which it acquired a large shareholding in 1959. Pye’s chairman (Mr C. O. Stanley) stated this in a letter to the Sydney Stock Exchange before he left for the United Kingdom after a two-month visit to Australia. The share purchase was made to strengthen and consolidate a previous technical and commercial agreement, not to gain control.