DORMAN, LONG AND CO.

Dominion, Volume 29, Issue 101, 23 January 1936, Page 12

DORMAN, LONG AND CO.

Trading Profit Doubled

Reviewing the accounts of Dormau, Long and Company, Limited, for the year ended September 30, the London "Times'’ states that the figures show the effect of the drastic scheme of financial reconstruction that was carried through a year ago. Under that scheme more th»n £9,000,000 was written off the fixed assets, a step that entailed an approximately similar cut in the capital. The company has in the past year participated in the general improvement in the heavy industries, its net trading profit being £825,173, compared with £419,860 for the previous year. After meeting debenture interest as modified by the reorganisation plan — only £l5OO became payable out of the past year’s earnings on the £600,000 of recently issued 4 per cent, prior lien stock —and interest on bank debts, the company is able to allocate £205,731 for depreciation, which the directors regard as adequate, and to place £200,000 to general reserve. This appropriation is made to equalise the effect on the liquid position of the payments made for redemption of the bank debts and the final liquidation of the exchange loss of £81,869 on transfer of funds from Australia. Out of the remaining surplus £185,768 is to be distributed to the first preference shareholders, which gives them their due 61 per cent., and £5lOl is left to be carried forward. Holders of the other three classes of Share capital, now of a combined total of just over £2,000.000. have yet to re-enter the dividend list.. The directors refer to the large expenditure that is in progress on the replacement of certain of the plant nowobsolescen t.