LAND COMPANY'S YEAR

Evening Post, Volume CXVI, Issue 146, 18 December 1933, Page 12

LAND COMPANY'S YEAR

„A STRONG POSITION

(From "The Post's" Representative.) LONDON, November 2.

Directors of the New Zealand and Australian Land recommend the payment on December 9 of the full dividend of 4 per cent, on the "A" preference stock for the year to Jlarch 31 last. Results for the year show a substantial loss due to severe drought conditions and lower stock values at the .close of the financial year to Jlarch 31 last, but in view of the favourable outlook for thq current year the directors feel justified in agai iidrawing from contingency fund to meet loss and cover dividend.

In-'Jlay it was announced that the directors had decided to defer consideration of the dividend on the 'A" preference stock until completion of the accounts for the year. The undertaking, however, has always contrived to pay the full preference dividend, and it may be assumed that the passing of the mid-term payment is a precautionary measure, though justified by the prevailing circumstances at that time. AA'hen making the announcement it was added that the results for the past year (to Maroh 31 last) must be unfavourable, owing to the severe drought conditions and the continued low wool and stock prices. For the 1932 • year, the results achieved showed a definite improvement, due in a large.measure to,lower costs and reduction in drought expenses. Trading operations for that period resulted in a loss of £57,439, but with' interest and other receipt's of £92,303, there was a credit balance of £34,864, as compared with a debit balance'of £T2;856f0r the 1931 year. Expense, etc., absorbed . £26,822, leaving available for debenture interest, .which required £28,766,-a sum of £8042 out of the year's earnings. The net result was a debit balance of £20,734. --The adverse balance and preference dividend were provided for by a draft of £46,000 on contingency fund, together with the transfer of £1p,377 from taxation reserve, leaving to go forward £7725. AVool is the company's principal source of revenue, and the low prices. -ruling., must have presented considerable difficulty to the management, while the company must have been adversely affected to some extent through its interest in land sales.

Owing .to the serious plight of nearly all the primary producers, some'of the purchasers of the company's land were unable during the 1932 year to pay instalments of capital and in certain cases interest, as they fell due. It is doubtful whether there has been any marked improvement in this direction during the company's year. Fortunately, through conservative management in the past, the financial position is strong, while some benefits should be felt from further economies put into operation during the year. The current outlook has improved considerably, and is reflected in the present price of 94 for the ordinary stock, which has not received a dividend since 1931, when 2 per cent, was paid.