DIVIDEND, 16 PER CENT.

Dominion, Volume 28, Issue 114, 7 February 1935, Page 12

DIVIDEND, 16 PER CENT.

Southland Frozen Meat Co. The fifty-third annual balance-sheet and report of the (Southland Frozen Meat and Produce Export Company, for the year ending December 31, 1934, shows that after providing for depreciation, contingencies, and repairs, and deducting the dividend paid at the half-year, there remains a balance of £51,572/4/8 in the profit and loss account. The directors recommend thqt this balance be appropriated by the payment of a further dividend of 8} per cent, on the paid-up capital, thus absorbing £9651/10/-, and that the balance, £41,920/14/8, be carried forward. The shareholders of the company have experienced a series of very succe’ fill years, the profits and dividends in thi .ast four years being as follow: —

♦lncluding special bonus of 25 per cent. The proposal to pay a further dividend of 8} per cent, means that the dividend for the year will be 16 per cent., an interim of 74 per cent, having been paid in June. The amount required to pay this dividend is £18.167, or £3891 less than the profits earned. The expenses (including directors’ fees. £1000) were £11,829, tin increase of about £lOOO over those of last year. The balance-sheet shows that_paid-up capital stands unaltered at £113.547, and the three reserve funds at £150,000. The item, “sundry creditors, advances against shipments and provision for contingencies,” shows a large increase, standing at £222.418, as against £155.153 for 1932. In 1932 this item amounted only to £97,259, so that it has more than doubled it’ two years. On the assets side there is again a substantial increase in land. buildings, machinery. and plant. These items stood in the bonks on December 31. 1932, at £145.379. On December 3'l. 1933, the amount had increased to £177,996, and on December 31, 1931. the figure stood at £198.317. The book values of properties, machinery and plant, have therefore been increased by over £56.069 during the last two years. Investments show n further large increase. The company’s funds represented by investments of a fixed character have grown as follow: —

This item has very nearly doubled in two years. The increase is set off by a substantial decrease in the item “sundry ’'debtors and mortgagors.” _ In 1933 this item jumped from £19,351 to £61,188. Last year it fell again to £14,726 —a reduction of £46.462. Stocks and stores show an increase from £47.747 to £60.645, an increase of £12.900. following an increase of £21,000 in 1933. • London agents balances stand at £lO.595 as against £4415. and the company has at the bank and in hand, cash aniounting to £85.362. as compared with £60.200 for the previous year—an increase of over £25.000 Summing up the changes on the asse.s side of the balance-sheet —the fixed assets have increased by £45,000. while the liquid assets have decreased by £l9oo—a net increase of £43.100. The company’s external liabilities as represented by the item “sundry creditors, etc..” have increased by £67.265. and as the item includes “provision for contingencies.” it G probably not rill external-debt. , , The company’s financial position is obviously one of great strength, and the market shows its recognition of the fart ■by pricing the £1 shares at £3/10/6. With n’l6 nor cent, dividend the buyer at this .price gets £4/3/7 per cent. for h:s money.

Dividend Profits. Percent. 1931 .... .... £14,358 12 1932 .... 14.516 12 1933 .... 51.085 *384 1934 .... 22,058 16

1032 £ 87.688 1033 142.080 1934 167.5S9