COMPANY PROFITS

New Zealand Herald, Volume LXXIV, Issue 22643, 3 February 1937, Page 9

COMPANY PROFITS

RECOVERY MOVEMENT

GROWTH OVER FOUR YEARS RISE IN DIVIDENDS The growth of profits and the rise in the assets of 32 groups of companies trading in Australia and New Zealand are reviewed in the recent issue of Jobson's Investment Digest. Over four years profits improved by 77.2 per cent, while in tho past year alone they have risen by 23.4 per cent.

Tho improvement in Australian and New Zealand concerns over the past five years and tho past year was Australia 74.4 per cent and 23.7 per cent, respectively, and New Zealand 142.1 per cent and 18.G per cent, respectively. It is pointed out that the New Zealand figures aro slightly misleading, since the great bulk of the growth of £364,758 in New Zealand profits over the past four years is attributable to a rise of £156,102 in the profits of the South British Insurance Company, Limited. All but five groups—airways, cement, coal, electricity and gas —showed profits which exceeded those disclosed in 1935. In similar review a year ago nine groups had done worse than in the previous year. Tho falling away in the five groups, with the exception of coal, was of low percentage. Growth of Reserves In a comprehensive table the Digest shows that over the four years capital was reduced in the aggregate £2,825,128 (s}d in the pound), although reserves increased £4,636,003, making a net increase of £1,810,875 in shareholders' funds over the period to £162,095,388 (1.13 per cent). In 1932 the net profit represented £4 13s 6'[d per cent on capital and £3 16s 5d per cent on shareholders' funds. Last year tho amount earned was £8 9s od per cent on capital and £6 13s 11 Id per cent on shareholders' funds. Dividends in 1932 amounted to £5,605,241, representing £4 5s 7d per cent, whilo last vear the amount distributed was £8,408,506, equal to £6 lis 2Jd per cent. Tho assets value per £1 of paid capital four years ago was 24s 5Jd, but is now 25s 3ijd.

Tlio Australian figures showed that capital dropped £2,725,553 to £123,026,424, but net reserves rose £3,582,081, so that shareholders' funds rose £856.528 (0.56 per cent) to £153.508,089. In 1932, £5,316,772 was distributed to shareholders, representing £4 4s 6£d per cent, but last year the distribution of £8,044,655 represented £6 10s 9Jd per cent on shareholders' funds, whereas the latest figures are £8 6s 4id and £6 13s 4d per cent, while the assets value improved from 23s 3id to 24s Hid. New Zealand Distributions New Zealand shareholders were on a percentage basis more fortunate than Australian. While capital dropped £99,575 to £5,116.975, reserves were increased £1,053,922 to £3,470,324, a net increase of £954,347 (12.5 per cent) in shareholders' funds. The Ivew Zealand profits in 1932 fell short of the sum of £288,469, which was distributed to shareholders in dividends and represented £5 10s 7d per cent. Last rear the distribution was increased to £363,851, or £7 2s 2id per cent. The sum earned on capital in 1932 was £4 ]Bs 4id and £3 7s 3d per cent 011 shareholders' funds; and last year the figures had improved to £l2 2s 10.Jd and £7 4s Sijd per cent. New Zealand assets values showed considerable improvement, moving up from 29s 3id to 33s 6Jd. An interesting feature nf the compilation is that of the 303 companies, 79 made losses in 1932, 53 in 1933. 33 i-i 1934, 23 in 1935, and 10 in 1936. Tho New Zealand figures were 10, 8, 3, 0 and 1, while tho Australian figures were 69, 45, 30, 23 and 9. The New Zealand company showing a loss last year carries on business in the drapery trade. . . Excluding thoso groups comprising only one company, banks, breweries, lead and zinc, motors, newspapers, and timber, showed improvement in the past year's earnings of each company comprising these groups. Brewery figures for the past four years show an improvement of over 50 per cent, while of 69 manufacturing companies 55 did better than in the previous year. Tho increase in prices for wool and other pastoral products accounted for a splendid recovery in this group, where nine of the il showed the best results for several years.

GOLD AND SILVER QUOTATIONS IN LONDON (Received February 2, 6.25 p.m.) LONDON, Feb. 1 Fine gold is quoted to-day at £7 2s OJd; an oz., compared with £7 2s on Saturday. Silver is quoted at 20 3-16 d an oz. spot, and 20 l-16d forward, compared with 20 5-16 d and 20 Id on January 29. The quotation for silver at per fine oz. is 21 13-16 d, compared with 21 15-16 d on January 29.

The following is a summary of tho fluctuation in the price per ounce of fine cold this year: — £ s d Highest, price, February 1.. 7 2 0% Lowest price, Jan. 5 and 0 . 7 3. 5/ 3 January 20 .. .. •. 7 1 8 1 / a January 27 .. .. • • • } '} January 28 7 1 11. January 20 .. 7 1 11/ a January 30 .. . .. 7 2 0 February 1 .. .. ..7 20,»

MINING NEWS GILLESPIE'S BEACH PAYMENT £BY TELEGRAPH —PRESS ASSOCIATION] DUNEDIN, Tuesday The directors of Gillespie's Beach Gold Dredging Company, Limited, have declared a dividend of Id a share, or 8 1-3 per cent, payable on February 24.

This is the sixth paymont made by the company, dividends of Id a share having been paid in September and November last year. Distributions of 5 per cent were made in February, 1936, and September, 1935, and 8 1-3 per cent in August, 1934.

YILEDS OF COMPANIES Riinu (West Coast). —3170z. for 129 hours and 48,711 yards.

BRITISH WAR LOAN (Received February 2, 6.95 p.m.) British Wireless RUGBY, Feb. 1 War loan, 3J per cent, is quoted today at £lO3 12s 6d, same as on January 29! STOCKS OF RUBBER LONDON, Feb. 1 Stocks of rubber at the end of January, as compared with recent months, were: — Oct. Nov. Dec. Jan. Tons Tons Tons Tons London .. 40,808 37,014 33,070 29,131 Liverpool ■ 56,667 61,(31-4 45,407 31,800