N.Z. TOBACCO

Grey River Argus, 5 December 1932, Page 6

N.Z. TOBACCO

15 Per Cent. Dividends NATIONAL COY’S. PROSPERITY. WELLINGTON, neeoiiiber -1. The National Tobacco Co. Ltd., ut Napier, again pays its 15 per ccn dividend. Net profits for the yc.tr enued 31st -October are £131.235 compared with 112.96(i fop 1931. The dn ce.tors report a year ■of smooth running and no untoward event to mar progress, “other than the general depression in trade and the diminished spending power of the smoker. White there is no doubt that consumption Ims declined al! round, competition on lhe other hand has been keener and far more accentuated than at any previeu- period.’’ The market is satiated with imported tobaccos. The conr any’s sales have shown n slight advame over those -of the previous year Customs and excHe duties paid totalled £225,000. “Our profits] :i ,‘;v seem large.’’ state the directors, “hut, as pointed out on a former occasion, they are the result, of an im.rensn output, In reality we are working on a very narrow margin, so narrow that, if nt any time we should be compelled to still further reduce on. prices to the trade only by a fraction of a penny per ounce, there would bo nothing loft to i ay a dividend with. “The production -of Np w Zealand leaf has ke*.t pace with the company’s present requirements, and when the r«* mainder of las* year’s crops will have h- op taken delivery of, the total yield will be in thy neighbourhood of 900,• 0051 b. representing a value of about £7O 00('i. Most of this money has gone to the Nel-on district. As a p-?-caution agaipst over-production.’ s’ato the direr 4 ora. “we had to considerably reduce the area under cultiva ♦ : on for the coming season, and swim of our growers had consequently to accept a cut in their acreage, while others had to go without a contract at The paid-th, cnpi’al of ttie company remains the same as last year, nt £l2’.311. To sundry creditors the company is owing £7431. The item of income tax is particularly heavy this year, and an amount of £22.000 has been set aside for this purpose. Total assets amount to almost £325,0<?n, an Increase »'f rough I v £22.000 over last year. Property hold I>y the company, including nremi«es. plant and machinery amount to £54.000 after writing off r o> depreciation. Those writings-off have been made on a more liberal scale this t'ni' than in previous years. Cash in hand and at bankers amounts to £7'k--315. inc’uding £40,000 on fixed deposits earning interest at the average rate of 4? per cent per annum. After do ducting all charges nnd allowing the sim of £22.000 for income tax there is a balance left of £43,411, which represents the ne* profits for the year. To this “must be added the balance of £1798 15s 9d brought forward from last rear, making a total of £45.210. The directors recommend again the distribution of a dividend at the rate of l‘> per cent, on ordinary shares and eight per cent, on p;Toferonee shares. absorbing £l7 896 i?»s; to transfer to reserve the sum of £20.000 and to carry over into next year the balance of £7213.