Donaghy’s Rope Shows 7.4 p.c. Profit Rise

Press, Volume CII, Issue 30154, 11 June 1963, Page 17

Donaghy’s Rope Shows 7.4 p.c. Profit Rise

(New Zealand Press Association)

DUNMrtN. June 11. Donaghy’s Rope and Twine Company. Ltd., increased its net tax paid profit this year by £5434, or 7.4 per cent., to £78.614. The directors described the result for the year ended March 31 as "most satisfactory and reflecting the high level of sales experienced during the period.”

The higher after tax profit followed an increase in gross profit from £257,579 to £274,322. Total expenses were up from £103.146 to £107.800. Expenses this year included salaries, etc., at £72.700 (£68.040 previously) Asi unchanged £2lOO for directors’ fees, and £33,000 depreciation (£32,000). With £4092 for rents and interests received, net profit before taxation was £170.614 (£ 155.680). Taxation provision was £92.000, compared with £82.500 last year.

The directors explained that, as in past years, depreciation has been written off at rates, which although higher than allowable for taxation assessment, were considered necessary. Stocks had been prudently valued, but because of heavy increases in market prices which had taken place during the year, the values adopted were lower than those acceptable to the taxation authorities

The tax paid profit of £78.614 for the year has increased the total of unappropriated profits to £l4B 957. A transfer of £40.000 has been made to the general reserve

and the 10 per cent, unchanged dividend will require £50,000, leaving a balance of unappropriated profits of £58,957 (£70343). Earning Rate With the trmwfer of the year’s profits, shareholders’ funds are now £819,740, compared with £793,176 tost year The earning rate on these funds has increased from 923 per cent to 9.57 per cent. Total current liabilities have increased from £140.518 to £167.611. this includes rises in sundry creditors from £12.463 to £28,650, and an increase in the provision for taxation from £90,555 to £101,401. Although stocks oh hand are down from £398,689 to £329,532, total current assets hwe increased from £801.919 to £638,157. This follows an increase in the bank account from £115.635 to £201.897, and increase in sundry debtors from £87.595 to £104.728 Total fixed assets are up from £331.775 to £351.196. The company’s annual meeting will be held in Dunedin on July 4, when shareholders will consider a proposal to capitalise the sum of £lOO.OOO out of pre-1957 profits This bonus issue will be made on a one-for-five basis to shareholders at July 1.

State Borrowing.— Net Government indebtedness to the Reserve Bank at the end of April this year was £ 62.8 m, a drop of £ 80.9 m compared with April last year.