K.P.N.Z. Drug’s Profit Up

Press, Volume CII, Issue 30191, 24 July 1963, Page 19

K.P.N.Z. Drug’s Profit Up

For the 16 months ended May 31, Kempthorne Prosser and Company’s New Zealand Drug Company Ltd., returned a net profit after taxation of £349,358. This compares with £234,303 for the 12 months ended January 31, 1962.

On a 12 monthly basis the latest profit represents a return ot £262,018, which is an increase of 11.8 per cent, on the previous year, and £5728 more than the record after tax profit of £256,290 in 1961. Gross profit for the 16 months was £1.405.348, compared with £1,000,779 in the previous 12 months. Other income and profit on the sale of plant brought the total gross profit in the 16 months to £1,422,683. After expenses of £577,154 (£417.102 in the previous 12 months), depreciation of £141,813. (£114,727), and directors’ fees of £5OOO

(£3750), the company’s pretax profit was £698,716 (£468,605), which was halved when provision of £349358 was made for taxation. Out of the 16 months taxpaid profits, dividends—a 4 per cent, interim and a proposed 10 per cent final—will take £210.937. (Total dividends last year took £150.670 —lO per cent, for the year—which compares with an effective 10J per cent when the latest dividends are taken over a 12 month period.) In addition to the dividends, transfers from the latest profit will require £125.000. These include £60,000 to the general reserve, £50,000 to investment in Northland Fertiliser Company, Ltd., and £ 15,000 for the superannuation fund.

This leaves a balance of profits from the trading period of £13,421, which, after small adjustments tor underprovision of tax and a capital profit, has increased the total of profits retained from £86,186 to £98,745. Transfers for the 16 months and a profit on sale of land and buildings of £121,765 have lifted total shareholders’ funds from £2,888.902 to £3.132,226. The earnings on these funds have increased from 8.087 per cent, to 11.126 per cent.