COLONIAL SUGAR COMPANY.

New Zealand Herald, Volume LXV, Issue 20098, 8 November 1928, Page 9

COLONIAL SUGAR COMPANY.

DIVIDEND OF 12* PER CENT. CONTRACTION OF PROFITS. REVIEW BY CHAIRMAN. (Received November 7, 10.15 p.m.) SYDNEY, Nov. 7. The report by tlio directors of the Colonial Sugar Company for the half-year ended September 30 was adopted at the meeting of the company to-day. The report slates that the profits for the period from (lie Australian mills and refineries and from other investments subject to Federal income tax, after providing for depreciation and other charges, amounted to £259,172. The earnings in New Zealand and Fiji and from other investments not subject to Federal income tax were £209,984. From the total of £469,156 the board proposed to pay a dividend of 20s and a bonus of 5s a share, absorbing £365,625 and leaving £103.531 a The addition of the latter amount to the balance of the profit and loss account at March 31, £365.053, made £469,384, from which Iho board proposed to place to reserve £IOO,OOO, leaving to the credit of the profit and loss account £369.384. The report stated that in Queensland rainfall had been deficient since July, affecting the crop which was now being cut adversely. Some Fiji districts had enough spring rain; others were suffering from drought. There had been no interruption of work at tlie refineries. Some changes in plant were being effected which it was hoped would result in economies in working. Prospects for the Season. The chairman, Mr. E. W. Knox, in moving the adoption of the report, said the output of the mills for the current season was expected to total 2,382,000 tons. Since August the weekly production had been a record. The company was now making about one hundredth of the world's sugar yield. Continuing Mr. Knox said Fiji cane for the 1929 season had not thriven and shortage of labour precluded extension of cultivation. New South Wales showed no sign of improvement in supplies to the mills, but the Queensland crop was promising well. The loss in the process of manufacture had been reducod. but the cost remained high, the reason being the price of coal, which was twice to thrice the level of 15 years ago. There had been some disturbance in the European sugar market through the grant of preferential duties for Empire sugar refined in Britain. The ultimate results of this were not apparent, but the first effects were certainly of advantage to raw sugar producers in the col- ' onies. The Queensland exportable surplus had been sold to British refiners, though at a price 30s a ton less than in 1927. Burden of Taxation. Since the last meeting the price of the company's shares had advanced from £SB 2s 6d to £63 15s, but this brought no satisfaction to the proprietor who meant to hold his investment. Mr. Knox added that the company was faced with the prospect of increased income taxation in States in which it had factories and also in New Zealand and Fiji, in all of which the tendency was to claim too large a proportion of local earnings for taxation. A special general meeting confirmed the resolution passed on September 28 making amendments to the deed of settlement. The following is a comparison of the company's results and appropriations for the last three half-years:— „ , Sept.. March, Sept., Half-year to 1027. 1928. 1928. Brought, forward £330,475 £341,806 £365.053 Net profits .. 47(1,516 490,111 469.15G £806,991 £831.477 £835,009 To reserve .. 100,000 100.000 100,000 Dividend, p.c. .. 12} 12} 121 Amount .. .. 3G5.G25 365,625 365,625 Carried forward £341,360 £3G5,853 £369,384 Compared with the corresponding period of last year the net profits for the sixmonths to September 30 show a decrease of £7360, an increase of £15,018 in the Australian profits having been offset by a decline in the New Zealand and Fiji profits of £22,378. In comparison with the March period the total profits are lower by £2o.9ss—Australian profits are higher by £22,665, but New Zealand and Fiji profits have fallen by £43,620.