COURTAULD'S PROFITS.

New Zealand Herald, Volume LXV, Issue 19879, 24 February 1928, Page 9

COURTAULD'S PROFITS.

DIVIDEND OF 25 PER CENT.

Another capital bonus.

(Received February 23, 1T.5 p.m.) A. and N.Z.-Sun. RUGBY, Feb. 23. There was animated dealing on the London Stock Exchange this morning in shares of Courtauld's, Ltd. This activity followed upon the announcement that tfie company is about to pay another dividend, making a total for the year of .25 per cent, free of tax, and a share bonris of 100 per cent, on its capital of £12,000,000. A profit of £4.566,000 was made in 1927, as against £3,840,000 in the previous year. W'ild excitement prevailed on the Stock Exchange after the announcement of the bonus and dividend. Last night the official closing price of tho. ordinary shares was £7 13s 9d. Long before the exchange opened to-day, scores of brokers started dealing and rapidly rushed the price to £9, which means that the market value of the ordinary shares appreciated over £15,000,000. When the exchange opened the price relapsed on profit-taking ,and closed at about £8 3s 9d. • Tho excitement spread to all artificial silk shares, the prices of which fluctuated rapidly. •Courtauld's, Limited, have an authorised and issued capital of no less than £20,000.000, of which £12,000,000 is in £1 ordinary shares and the balance in 5 per cent, preference shares. The company has been extraordinarily prosperous and has made very rapid progress since the war, owing to the increasing popularity of artificial silk. In 1914, its net profit was .£520,349, out of which it paid a dividend of 12| per cent, on about £2,000,000 of capital; for 1924, its dividend was 20 per* cent. Profits rose to the record amount of £4,411i413 in 1925, this after appropriating £500,000 to the pensions scheme and £200,000 to ; the insurance reserve. A dividend of 25 per cent,, tax free, was paid. Increasing competition and the strikes affected the company's earnings in 1926, the net profits being announced as £3,840,791, and the dividend was reduced to per cent. The latest report shows profits apparently exceeding the record of 1925, accompanied by a dividend at the same rate as was paid two years ago. As • tho cable does not mention any appropriations to reserves, the past year's profits, £4,556,000, should perhaps be compared with the actual profit of £5,111,413 for 1924. The announcement of a capitalisation ofreserved profits to the extent of 100 per cent, of the whole capital makes the 'fpurthi.'bonus issue. The first, of 100 per cent., was made in 19l9; the second in 1920, when the amount was 200 per cent.; and the third in 1924, when a bonus of 66 2-3 per cent, was paid in preference shares. . / • . • The present dividend will absorb £3,000.000, with £400,000 for the preference dividend, leaving £1,166,000 to be added to reserves. The balance-sheet for. 1926 showed assets amounting .to £37.403,248, nearly half of whiph repre : sented the company's holding in, the American Viscose Corporation.

WESTPORT STOCKTON COAL

REVIEW OF YEAR'S WORK.

[BY ,TELEGRAPH. —OWN CORRESPONDENT.] CHRISTCHURCH. Thursday. . The Uventy-second annual meeting of shareholders of the Westport Stockton Coal Cprapany, Ltd., was held on Wednesday. Mr. C. G. McKellar, chairman of directors, presided over a large attendance. The chairman, in moving the adoption of the report and balance-sheet, said: "On the liability side there are one or two satisfactory features. The bank overdraft has been entirely eliminated and there is only a very small amount under the heading bills payable. On the assets side the property account is reduced by £BOOO odd and now stands at £247,28/. The reduction is due to sundry recoveries, to the depreciation mentioned in the report, and to the surplus devoted to writing off part of the capital cost of the flume. Stores in hand increased by £2OOO, due to the necessity of carrying larger stocks as the result of larger output. Sundry debtors are, of course, substantially higher, as might be expected, with the larger output. These accounts have been paid since the balancing date. "You will, remember that the profit and loss account at the commencement of the year showed an accumulated loss of £8399 Is sd. This has been eliminated by the transfer of the reserve account, which was purely a paper reserve, and served no particular purpose, and by' the transfer of £524 17s 2d from working surplus. The output for the year increased by nearly 30,000 tons. In spite of this we could not keep pace with the insistent demand and accordingly we have matters well in hand for further increasing the output. Among other things w& are driving under contract a stone tunnel to cut out a very awkward section of underground haiilage, which is expensive to maintain, and and this tunnel should be finished in the near future. "A substantial amount of repair and maintenance work has been carried out during the year. More r remains to be done, especially as regards the power plant, but the whole undertaking is being gradually brought up to concert pitch. _ "The outlook for the current year' is encouraging. Practically all the hopes expressed by the directors at the last annual meeting have been realised, and the future may be looked forward to with confidence. In conclusion, I would refer very briefly to the question of depreciation which was raised in the auditors' report on the, operations for 1926. The directors have this year provided a reasonable amount for depreciation, and still further dealt with the matter by providing for the reduction of capital cost of the flume, but they do not think that any other measures are called for at present." The report and balance-sheet were adopted. t

MELBOURNE HIDES SALES* (Received February 23, 11.50 p.in.) A. and N.Z MELBOURNE. Feb. 23. At 'the Melbourne hides sales, stoats and light kips were unchanged. Other classes were pne halfpenny lower. PROPERTY SALES. C. P. Bennett, Limited, will offer at auction at their rooms. New Zealand Insurance Buildings, at noon to-day, three properties in Heme Bay waterside, comprising residence of 9 rooms, at No, 4, Wallace Street, on freehold section 88ft. by 210 ft.; house, of 6 rooms. motor gurage, on freehold section, at 28, Emmeit Street; and at 27, Curran Street.' house of 6 ryoma on freehold section 3Sft. by 120 ft.. At. the siime sale three freehold sections m Violet Crescent, Parnell, will be offered w one lot. By order of the registrar, a farm property of 571 acres in the parish of Pepepe, on tho Waingaro-TuaK.au Road, will be otiered. The firm will also sell under conduct of the Registrar of the Supreme Court, property in Leighton Street, Grey Lynn. _ Saniuel Vaile and Sons, Limited, will offer at auction at their rooms, 83, Queen Street, at 9 p.m. to-day, the following properties: Block on corner of Vauxhall Road and Domain Street, comprising shop and dwelling and two cottages; cottage of . four rooms, at No. 9, Bath Street, Parnell; at the request of the mortgagees, semi-bun-galow of six rooms at No. 26, Dryden Street, Grey Lyfm; and farmlet of 14 acres at Huapai, Kaipnra Hne. Neville. Newcomb, Limited, will offer at auction tit their rooms. 4, Wyudham Street, to-~d»y at noon, the following properties; No. (5, Rangitoto Avenue, Reipuera. ' bungalow of 6 rooms; Hauraki Boad, Takapuna, S rooms and large section; Tirohanga Avenue, Remtiera, freehold Section, about J-acre; Middlemore Street. Mangere, 4 freehold sections; at Raupiriri. ~I3J. acres and 4-roomed house, on river bank. T. Mnndeno. Jaekgon will offer at auction at 11 o'clock to-day at his. rooms, 9. t Cpmvmer<*e" Street," City; Two-storey building, comprising shop and offices, on section haying 28ft. 7in. frontage to King Street. Pukekohe. The sal* i» by order of the socond mortgage®.