MORRIS MOTORS PROFITS.

New Zealand Herald, Volume LXVI, Issue 20243, 1 May 1929, Page 11

MORRIS MOTORS PROFITS.

A SMALL REDUCTION.

RESERVE OF £2,000^000,

After making full provision for depreciation of assets and air possible contingencies a trading profit of £1,314,089 was earned last year by Morris Motors (1926). Limited. This compares with £1,334,907 for 1927 and £1,001,634 for 1926, the first trading period of the company as a public undertaking. The. direftors state that they consider this a most satisfaetftry result, especially as 1928 was admittedly-a very difficult year in the motor trade generally. After meeting the dividends on the preference shares and income tax there was a balance of £829,853, equal to well over 40 per cent, on the £2,000,000 of issued ordinary capital. The directors', howoyer, have once again decided against the pay-' ment of any ordinary dividend; they are, instead, placing £900,000 to reserve and carrying forward £154,634, which compares with £224,781 brought in. As the ordinary shares are all privately held, the, public, which holds the preference shares, have every reason to feel pleased with tho board's conservative policy, the Times remarks. . It has enabled the company within, three years to accumulate the --handsome reserve of £2,000,000, so that it could now, if it so desired, write ofii the whole of the goodwill item (£1,641.000) and;'still possess a reserve (including the "carry forward") of more than £500,000. . The fixed assets, including expenditure on buildings in the course of erection, havo increased from £1,829,257 to £2.087,907. Among interests "in siibsidiaries is a new item—namely, the in* vestment- in Morris (New South Wales), Limited, which' stands iri the books at £IOO,OOO. Stock and work in progress has been kept slightly below last year's figure, the present total of £1,292,031 comparing with £1.357,938. . ■