FARMERS' TRADING CO.

Evening Post, Volume CXXIII, Issue 51, 2 March 1937, Page 12

FARMERS' TRADING CO.

DIVIDEND INCREASED

(By Telegraph.—Press Association.)

AUCKLAND, March 1.

A dividend of 7 per cent, on the ordinary shares will be paid by the Farmers' Trading Co., Ltd., for the year ending March 31. The directors announce a new capital issue of 200,000 shares of 20s each at a premium of Is each. The dividend compares with 5 per cent, for 1936. Profits for the current year will exceed £100,000, compared with £61,458 last year. After allowing for income tax there will be £62,500 available. Ordinary dividends together will absorb £38,800, allowing the balance to be' used in expansion of the business and creating a basis for a further distribution of bonus shares in which the shares now offered would be entitled to participate. The directors report that the company's shares have been selling above par for some time. Realising that the offer of a large number of shares will probably bring the price down temporarily, the directors, undertake to put the price of the unissued ordinary shares up to 23s 6d as from April 7, in order to protect present shareholder;: and buyers of the new issue. The company's retail sales for the ten months to January 31, together with the estimated totals for February and March, amount to £1,873,744, an increase of £269,253 over the past year.