MORE SUGAR PROFITS

Press, Volume CIII, Issue 30442, 16 May 1964, Page 16

MORE SUGAR PROFITS

Fourth Leap In Earnings

Gibson and Howes, Ltd., Queensland sugar miller, more than doubled net profit in the year to December 31 and is the fourth Australian sugar company to disclose a leap in earnings. The net profit rose from the previous peak result of £154,942 in 1962 to £355,501 last year. The increase of £200,559 is equal to 129 per cent. Earning rate rises to 34.1 per cent on capital increased by the one-for-three bonus issue of last December. In 1962, earning rate on pre-bonus capital had risen from 15.4 to 24.6 per cent. Bonus Dividend Dividend of 15 per cent includes 3 per cent bonus, and requires £156,000 on the higher capital. The profit is after larger provisions for tax, £250,000 (up £138,000), and depreciation, £104,546 (up £9729). It is also after providing £16,000 for maintenance (nil last year). Sugar output was 52,520 tons from 381,000 tons of cane. This compares with the 1962 peak of 58.803 tons of sugar from 408,940 tons of cane. Directors say that because of lack of rain a reduced tonnage will be delivered for crushing in the 1964 season. Ballins Hotels.—Ballins Hotels, Christchurch, recomended final ordinary dividend is 4 per cent, making a steady 6| per cent for the year; ex dividend, July 1, payable July 9.—(P.A.)