TRADE AND FINANCE

Evening Post, Volume CXXIII, Issue 5, 9 March 1937, Page 12

TRADE AND FINANCE

PRODUCE & MARKET REPORTS FROM DAY TO DAY

TOBACCO PROFITS

EXCEED £5,500,000

BRITISH-AMERICAN COMPANY

Sh- Hugo Cunliffe-Owen, presiding at the 34th annual general meeting held in London of the British-American Tobacco Co., Ltd., announced an increase in profits for the year of £5,541,755 with steadily-increasing sales. Goodwill, trade marks, and patents remain at the same figure as last year, viz., £200,000, and, in view of the great value of the- company's trade marks, Sir Hugo explained that the directors were of the opinion that this item should appear on the balance-sheet, even if only at the nominal value of £200,000. "Investments in subsidiary companies, at cost or under, amount to £26,874,446, and loans to and current accounts with subsidiary companies amount to £1,446,092, making a total of £28,320,538, and these show an increase of £608,760, as against the same items in last year's balance-sheet. "Investments in shares, however, show an increase of £2,525,070 and loans and current accounts show a decrease of £1,916,310. This is partly due to the capitalisation of loans and partly to new investments. "Investments in associated companies, at cost or under, amount to £3,944,855, and loans to and current accounts with associated companies amount to £2,852,988, making a total of £6,797,844, and these show an increase of £1,286,207, as against the same items in last year's balance-sheet. "Other investments, £18i;480, show a decrease of £13,159, due to realisation." SUBSTANTIAL CARRY-FORWARD. After making detailed explanation of other items in the balance-sheet, Sir Hugo said that the accounts showed a net profit for the year, after deducting all charges and expenses and providing for income tax, of £5,541,755, an increase of £72,584, which, under present conditions, should be found satisfactory. "Last year we carried forward a balance of £2,357,877 7s 3d," the chairman continued. "To this must be added the profits for the year as previously mentioned, £5,541,755 12s 3d less the dividend on the 5 per cent, preference stock of £225,000; on the 6 per cent, second preference stock of £360,000; and the four interim dividends paid on the ordinary stock for the year amounting to £3,946,960 3s 4d, leaving a disposable balance of £3,367,672 16s 2d." The directors recommended allocation of £150,000 to the employees' benevolent fund, bringing that fund up to £263,600. The distribution on January 18 of a final dividend (free of United Kingdom income tax) on the issued ordinary stock- of 8d per £1 of stock, amounting to £789,392 0s Bd, left £2,428,280 15s 6d to be carried forward. INCREASED SALES. The sales of the company's goods during the financial year 1935-36 were greater than the sales for the year 1934-35, and the sales for the first three months of the current financial year showed an increase over the sales for the corresponding three months of last year. "But, as I have told you in previous years," Sir Hugo remarked, "owing to exchange difficulties, additional taxation, restrictions by way of duties and otherwise, which have been placed by many Governments on the importation of goods into foreign countries, as well as restrictions on internal trading in such countries, the additional profits, which one would expect in normal times to result from the increase in sales, do.not always materialise. However, I feel confident that so •long as we can go on increasing the volume of your business throughout the world, you will gradually see the increased volume of business reflected in the profits as shown on the balancesheet." SUBSIDIARY COMPANIES. The chairman also referred to the auditors' note on the balance-sheet, stating that "in the aggregate, the value of our investments in subsidiary and associated companies is largely in excess of the figures shown on the bal-ance-sheet. It has also been suggested that the board should distribute all or part, of this surplus to the shareholders. Now, I take it that most of our shareholders realise that the bulk of our revenue is derived from dividends from your subsidiary and associated companies. It will be obvious to most of you that, as the present dividend on your ordinary shares is at the rate of 20 per cent, per anum, free of tax, the gross dividends from your shareholding in subsidiary and associated companies must be substantial. Therefore, even on a most conservative valuation, these shares must be worth considerably more than the values shown on the balance-sheet in order to yield their present revenue. "The fact of writing up the value of your investments cannot in any way increase the revenue of the company, }< and I think you will all agree, there- t fore, that no useful purpose would be served by making any change in the c book value of your investments." jj The report and accounts were unani- v mously adopted.

MAD SCRAMBLE

BUYING OF METALS

(By Telegraph—Press Assn.—Copyright.) (Received March 9, 10 a.m.)

LONDON, March 8.

There was another mad scramble to buy metals today. The turnover vas 2250 tons of copper, 800 tons of tin, 2500 tons of lead, and 4500 tons of spelter.

AUSTRALIAN SHARES

MARKET, QUIET TO FIRM

(By Telegraph—Press Assn.—Copyright.) MELBOURNE,1 March 8.

The market was fairly quiet, but industrials maintain a firm tone, with Barrier Mines and Mount Lyells steady.

Sales:—E.S.A. Bank, £6 11s; National Bank, £5 . paid, £8 2s; National Bank, £10 paid, £16; British Tobacco, 53s 6d; G. J. Coles, £5 6s. •'•

Drug Houses, 29s 6d; Australian Iron and Steel, pref., 29s 3d; DunlopPerdriau, 20s 8d; Goldsbrough Mort, 38s 6d; Hume Pipe, 21s 2d; Electrolytic Zinc, 665; ditto, pref., 68s 9d; Melbourne Electric, 17s 6d. Mount Morgan, 18s lOd; Mount Lyell, 52s 9d; Broken Hill Proprietary, 89s 6d; North Broken Hill, 89s; Broken Hill South, 57s 9d; Zinc Corporation, £8 6s 6d; Emperor, 20s 6d; Loloma, 25s 6d.

SYDNEY, March 8.

The turnover in investments on the Stock Exchange today was restricted, and although price movements were irregular the tone of the market was firm. Barriers were firmer,.but Mount Lyells edged back.

| Sales:—Bank of New South Wales, £37 15s; Commercial Banking Co. of Sydney, £22 10s; Queensland National Bank, £5 15s; Colonial Sugar, £43 ss; Associated News, 23s 9d; ditto, pref., 23s 7£d; Adelaide Steam, 32s 7£d; Huddart, Parker (ord.), 40s; Australian Gas, A, £7 2s; British Tobacco, 53s 3d; G. J. Coles, £5 6s 6d; Goldsbrough, Mort, 38s 6d: Wilcox Mofflin, 13s; Fairymead Sugar, 39s 6d; Electrolytic Zinc, 665; Mark Foy, 29s 9d; Taubmans, 735; Gordon and Gotch. 52s;i Woolworths, Ltd., buyer, at £8 3s, seller at £8 ss; General Industries, 21s 7id; Mount Morgan. 18s lid; Mount Lyell, 52s lOJd; Kuala Kampar Tin, 23s 9d; Rawang, 13s 2d; Emperor, 20s 3d; Tongkah Harbour, 24s 3d; Malim Nawar, 12s 3d.

Wellington. Inscr. Stock, 3Vi p.c, 1U3S-52 : a. 101 17 (5 3 9 0 Bunk of N.Z 2 2 5 4 14 3 Nat. Bank of N.Z. o.s. :i 2 0 3 4 5 Goldsbrough, Mort .. 1 18 0 8 13 8 N.Z. Guarantee Corp. 0 5 9 5 15 Trailers' Finance (eon.) 0 5 (i 5 9 1 Christchurch Gas-... ISO 4 IS 2 N.B. Breweries 3 0 0 2 ]0 0 Staples and Co. ...g. 1 1.1 0 '• 17 1 Australian Glass -1 13 0 3 4 6 Colonial Sugar 43 0 0 2 IS 1 Consolid. Brick 0 10 3 3 IS 0 Electro. Zinc (orcl.)y.* 3 4 6 3 2 0 Dunlop-Perilriau .... 103 4 IS 9 G. J. Coles * 5 fi 0 2 7 2 N.Z. Paper Mills .... 183 4 19 1 Taranaki Oil 0 3 2 — Unofficial listGrey River 0 4 4 — Wool worths, Ltd. ... S 3 6 — Auckland. Inscr. Stock. 4 p.c, 15/8/1952-53 a. 103 0 0 3 17 7 Wgtu. Hospital, 4*4 p.c, 14/9/1943 ..a. 103 0 0 — Bank of N.Z 2 2!) 4 13 6 Union Bank o.s. 11 1 9 2 S) 7 N.2I, Insurance 3 13 3 53 Traders' Finance (contr.) .: 0 4 5 ■ 6 16 0 Kauri Timber ...... 1 3 3" 5 7 C National Timber .... 0 10 0 10 0 0 Wgtu. Woollen (ord.) 5 13 0 5 6 2 Australian Glass .... 4 13 0 346 Broken'Hill Pty. .u.* 4 8 G 2 16 5 JJyeroft 2 0 Ci 3 19 0 Consolid. Brick 0 10 3 3 18 0 Duulop-Perdriau .... 103 4 18 9 Electro. Zinc (ordl)y.* 3 5 0 3 10 Electro. Zinc (pref.)y.* 3 6 0 3 0 1 Farmers' Trading, A prof 1 2 6 4 10 6 G. J. Coles * 5 0 0 2 0 11 McKendriek Bros. .. 0 19 0 7 13 10 Milne and Choyce .. 0 l(i 9 ' 4 15 6 N.Z. Newspapers .... 11!) 0 2 11 3 Taranaki Oil 0 4 4 — WooIworthB (N.Z.I .. 7 5 0 2 4 4 Broken Hill South . 2 10 0 — Big River 0 110 — Mount Lyell f 2 12 9 3 15 9 Unofficial list— Woolworths, Ltd. ... S 4 6 — Christchurch. Inscr. Stock, 4 p.c, 15/2/1943-40 . ..«i. 10112 6 3 IS 10 N.Z. Farmers' Co-op., 4V4 p.c, 1940 93 0 0 4 16 9 Nat. Bank of N.Z. o.s. 3 2 0 3 4 5 Nat. Bank A'asia (£5 paid) S 0 0 3 5 7 Conim. Bank of Aust. 0 19 5 3 0 1 National Insurance . 0 17 !1 4 3 8 Goldsbfongh, Mort ... I IS 0 3 13 S N.Z. Guarantee Corp. 0 5 9 5 15 Christehurcli Gas ... 1 8 S 4 17 S N.Z. Breweries 2 19 1L 2 10 1 British Tobacco .p.ti. 2 12 11 3 0 2 Electro. Zinc (ord.)y.* 3 5 0 3 10 Electro. Zinc (pref.)y* 3 7 4 2 19 4 ; General Industries .. 110 7 8 9 G. J. Coles * 5 5 3 2 7 6 Broken Hill Pty. ..* 4 9 0 2 16 2 Woolworths, N.Z 7 5 0 2 4 4, Taranaki Oil 0 5 0 — ; Wilcox MofTlin 0 12 7 7 IS 11 j Mount Lyell 2 13 0 3 15 5 Mount Morgan 0 IS 10 — Unofficial list — Were's Invest. Trust 0 C 3 — Woolworths. Ltd ... 8 3 3 — ' Grey Kiver (2s (id pel.) 0 4 2 — Ounodin. f