BROKEN HILL PROPRIETARY

Dominion, Volume 29, Issue 263, 3 August 1936, Page 12

BROKEN HILL PROPRIETARY

Great Increase in Net Profit

The Broken Hill Proprietary Co., Ltd., on Saturday advised the Stock Exchange Association that, subject to audit, the net profit for the year ended May 31, 1936. was £850,360/18/4, after providing £615,052/4/3 for depreciation and £23,305/7/3 for debenture interest. Besults for the last three years compare as follows: — Year ended May 31. 1934. 1935. 1936. £ £ £ Net profit 427,588 670,442 850,361 Depreciation 407,978 541,949 615,052 Deb. interest 29,691 26,241 23,305

In the term to May 31, 1935, the company earned 22.4 per' cent, on £2,987,708 of capital and paid 10 per cent. It has lifted its dividend for the financial year just ended to 12J per cent. In the past 12 months 750,000 £1 shares have been issued in exchange for the Australian Iron and Steel ordinaries, and shareholders have taken 1,493,854 new shares at a premium of 10/-. When all the new capital is in, the share register will total £5,231,562. It will be some time, however, before all the money is called up. But the 1935 profit would have paid ,12} per cent, on the total and left £41,000 for reserves.

There was a 20 per cent, increase in output during the 12 months ended May 31, 1936, and profits are up by appro> mately £lBO,OOO, while an additional £7b.000 has gone to depreciation.

Meanwhile the company has about £1,250,000 of capital on its books that is temporarily “dead” from a shareholders’ viewpoint. When Australian Iron and Steel and the new tinplate works start adding to the Newcastle steelworks’ earnings the position should become considerably more attractive. With the present contributing shares fully paid, 1 per cent, movements in the dividend would account for £52.300 per annum. The company's reserves as at May 31, 1935, stood at £3,929,978.

BROKEN HILL SOUTH Quarterly Dividend Payable Broken Hill South. Limited, on Saturday advised the Stock Exchange Association that a dividend of 2/6 per share had been declared, payable in Melbourne on Sepember 18. Share transfer books will be closed on August 7. A similar dividend was paid on June 13. A dividend of 1/6 ami a bonus of 1/- a share were paid on September 14, 1935, a similar distribution was made ->n December 19 1935. and a jubilee bonus of 2/6 a share was paid in March. For the year ended June 30. 1935. the total distribution was 30 per cent.

RAW MATERIALS Last Week’s Closing Rates Ur Telegraph—Press Assn.—Copyright ilteceiioo August 2. 6.30 p.m.) London. August 1 I' riday's closing prices for the following raw materials were as follows, those for July 21 being shown in parentheses :- Cutton Liverpool quotation, good American middling, spot. 7.15t1. a lb. (7.33 d. • September delivery. 6.63 d. a lb (6.86d.l Rubber. Para lOld. a lb. (93<1.) ; plantation smoked ribbed sheet. 7 11-16 d. a lb. (7 5-S<l.). Jute: August-September shipment. Indian jute, Dundee quotation. £l6/17/6 a ton <£ 16/7/6). Copra : August-September shipment South Sea. to London or Rotterdam, £l3 o ton (£l3/5/-) ; smoked, to Marseilles or Genoa. £l2/10/- a ton (£l2/15/-) ; plantation. Rabaul, to London or Rotterdam, £l3/17/6 a ton (£l4/5/-). Linseed oil: £29/5/- a ton (£2B/15/-), Turpentine: 39/3 a Qwt, (40/3).