MESSRS. JOSEPH NATHAN, LIMITED

Evening Post, Volume CIII, Issue 124, 29 May 1922, Page 8

MESSRS. JOSEPH NATHAN, LIMITED

FURTHER ISSUE OF NEW CAPITAL.

(HtOU OD« OWN CORRISPONDINT.)

LONDON, 21st April. . In their report for the year ended 30th September, the directors of Messrs. Joseph Nathan and Co., Ltd.; the proprietors of Glaxo and colonial produce merchants, refer to the exceptional difficulty for trade generally, but state that there1 was continued progress in the company's turnover. An accompanying circular announces that the time has arrived when provision has to be made for a further issue of capital by the creation of 450,000 new shares at £1 each, the time of issue and class of shades being left in the hands of the directors. The last issue was made in May, 1921, when £300,000 in 8 per cent, participating- preferred ordinary shares was offered at par. This brought the issued capital up to £762,050, as against an authorised capital of £1,050,000, the difference being represented by unissued or partly paid ordinary shares. In the circumstances, the necessity for the authorisation of fresh capital is not immediately apparent, but the company's business has expanded very rapidly, and the balance-sheet shows that at "the present time advances from bankers, including advances against produce afloat and awaiting shipment, total £355,200. These loans are partly secured by deposit of shares in other companies and ■ title deeds and mortgages on certain of the company's properties. The .corresponding item in the accounts for 1919-20 was only £272,900, and it may readily be understood that both the directors and the banks are anxious to reduce the liability in its present form by substituting a more permanent security, while for this purpose the existing unissued ordinary shares are at present not altogether suitable. ...

The accounts show a net profit of £82,400, ■ which compares with £89,200 for the previous twelve months, the trading profit being £88,400, as against £114,800, but an additional £18,600 is secured as profit from land sales. Owing to the larger sum brought into the accounts, the available' surplus is £156,----000, as compared'. with £149,000, and the directors recommend a final dividend on the ordinary .shares, bringing the return up to 10 per cent, for the year, while placing £25,000 to contingencies account and carrying forward £86,100. Last year the dividend was 15 per cent., and the special appropriations totalled £28,400, but only £23,500 was carried forward, while it has to be remembered that there is additional capital now ranking for dividend.