REDUCED PROFIT

Dominion, Volume 32, Issue 39, 9 November 1938, Page 14

REDUCED PROFIT

Abraham And Williams, Ltd. ORDINARY DIVIDEND RAISED The directors of Abraham and Williams. Ltd., in their thirty-seventh annual report, to be submitted to shareholders on November 21, slate that the net profit for the year, after providing for debenture interest and land and income tax, amounts to £9844/18/1, to which has to be added the amount brought forward from last year, £19,268 16/2. making a total of £29.113/14/3. From this sum has to be deducted the interim dividend of 2} per cent, for the six months ended March .11. 19<><8, amounting to £2206/16/-. leaving a balance available for distribution of £26.906 IS/3. Out of this sum the drieetors recommend that a dividend of 4J per cent, be paid, which, together with 2J per cent, paid on April 30 last, makes i per cent, for the year, leaving £22,934/13/5 to be carried forward to next year's accounts. The retiring directors, Messrs. J. T. Martin and E. 11. Binney, offer themselves for re-election. The directors record with deep regret the death last June of Mr. R. E. Beckett. who was a director and customer of the company for more than 37 years. Capital is shown at £294,210, made up of 176.544 ordinary shares of 10/- each, fully paid, £88,272 and £205,968 of perpetual debenture stock of 5 per cent. A year ago capital was made up of £82,020 6 per cent, cumulative preference shares and £212,220 ordinary shares, a total of £294,240. MORRIS, HEDSTROM, LTD. Interim Dividend Declared Morris, Hcdstroui, Ltd., yesterday advised the Stock Exchange Association that the directors have declared an interim dividend of 3 per cent, on the ordinary shares payable on December 31. Transfer books will be closed from December 17 to 31, both days inclusive. The interim dividend is at an unchanged rate. The final dividend for last financial year was 3 per cent., plus an anniversary bonus of 24 per cent., making a total of 8-J per cent., as against 5J per cent, for the year ended March 31, 1937. ROTOITI TIMBER CO. Ordinary Dividend Reduced The directors of the .Rotoil i Timber Company, Ltd., report that sales turnover for the 12 months ended June 30, 1938, was £41,844/1/11, an increase of £6926/3/1 over tuc preceding 12 months, but because of the increased costs of production the net prolit, after providing for £1750/15/11, depreciation of plant and equipment, was only £436/18/I_l higher. Ju 1935, with a turnover of £27,846, the net profit was actually £lB4 higher than the profit for 1938 with a turnover of £-11,844. After payment of the dividends declared for the year ended June 30, .1.937, and providing £625/8/9 lor income tax, a balance of £6794/13/3 remains in the profit and loss appropriation account, aud out of the balance the directors recommend that a dividend at the rate of £6 8/- per cent, per annum ou the preference shares (£246/13/10) and a dividend at the rate of 3 per cent, per annum on the ordinary shares (£13381 be declared for the year ended June 30. 1938, aud that the balance of £5209/19/5 be carried forward. Un the assets side of the balance-sheet, bush cutting rights, £14,127/15/2, shows an increase of £ll,BlO/16/11 over the previous year's figures, due chiefly to the Rotoiti Timber Company taking over from the Kotoma Development Company the cutting rights over the Waione block. Advances to subsidiary companies show a corresponding reduction of £ll ,564/tS/7. New areas- acquired and negotiations for the sale of cut-out areas have necessitated additional expenditure under these headings. . , , • The new mill at Waione has been in operation during the greater part of the year, and it is working satisfactorily. The cost of the new mill and plant accounts for the increase of £5532/3/3 in this item. The cost of the new mill and plant and opening up the new areas was financed by means of sale of tram tails and increased advances from the compane's bankers, the net liability to the bank showing tin increase ot I;»0o8/1./J. The company has received a fair share of business offered and stocks of seasoned timber are being built up. L" , rising costs, however, it is dilhciill t.o secure a reasonable ratio of profit. It is perhaps worthy of mention that of the sum of £41.844 gross proceeds o£ sale ot timber the sum of £26,879 ( approx limit elv 6-1 per cent.) was paid out in wages. The shareholders’ share of the gross proceeds (out of which income tax is payable) is approximately only 8 per cent, of the total. , The retiring directors, Messrs. < U. While and R. A. Wilson, offer themselves for re-election. The ordinary dividend last year was 4 per eent.