FLOUR MILL PROFIT

New Zealand Herald, Volume LXXV, Issue 23000, 30 March 1938, Page 9

FLOUR MILL PROFIT

NORTHERN HOLLER YEAR RECOVERY IN EARNINGS DIVIDEND AT 31 PER CENT The profit of tlx. l Northern Poller i\lilli"ii«r Company, Limited, for the year ended February 28. before making provision for income tax, was I'19,Sol), an increase of £BOO6 over the previous year's figure. After allowance for income tax the; net earnings are £11,763, against £6265 in ]9.'57. The directors recommend a dividend on onlinary shares at the reduced -rate of 3] per cent, which compares with 4 per cent last year. This requires £7875. A sum of £15900 has already been distributed in preference dividend, £14,179 remaining to be carried forward, against £41,19] brought into the accounts. The report states that the year completes the second under Government control. While the result could not by any means be called satisfactory, it was much better than that of the previous year. The better result had been brought, about mainly by the Government giving all mills an increased allowance for gristing.

Limitation of Earnings The final result showed barely 3J 'per cent 011 ordinary share capital. It was hoped, however, that now tho company could show the Government that the present allowance for gristing did not allow more than 3J per cent to be made, the company might be able to induce the Government to give further help, so that a fair rate of interest might be earned for the future. Shareholders were reminded 'ast year that future dividends could be recommended only if suflieient profit was earned. The retiring directors, .Messrs. J. A. lVacoek] and .). B. Donald, are eligible lor re-election. Following is a comparison of results for the past three years: l 1)30 1037 11)38 Prt. forward £58,0n0 '£.',0,830» £ll,tut* Profit .. 32, .ViT 1110,851) jCtio,or>({ £02,023 £G>,OSO Dividends - l'f., 51m |I.C. 3,000 3.000 3.000 Ord., p.c. Mi 4 3% Amount 12,375 0,000 7.875 Income tax 10,501 0,5-'8 8,0110 Cur. forward £03,820 X*-1-1,105 £-14,171) •After tire payment of additional income tax and, in 11)37, the placing of £IO,OOO to debts reserve. Balance-sheet Items Movements in the balance-sheet items are as follows: — LIABILITIES £ £ Paid capital .. 300,000 Same •Reserves. .. • • 70. Hill +2.»0 Creditors .. .. 8,113 -31,1-U P. Jt L. balance . 02,100 +.j,l)2< ASSETS Properties . . . . 1 12,007 -3.020 Machinery, etc .. 71.123 -3,183 Stock •• •• 177,010 +72,032 Hank deposit . . 15,255 -'JO.IMIO Debtors .. .. 8.110 -0,083 Deposit at call . . _— -00.105 Wheat rointe. . . 17.351 -3,500 (Investment account . . 3,000 Same .Insurance, rates, etc. 1,352 -M Allocation purchased . 001 +2OO

'The balance-sheet changes indicate a return to more normal conditions .following readjustments as a result ol the changed system of gristing under Government control. Also, in an abnormal accumulation of funds had been brought about by the lateness of _the .season. The total ol assets is £4-10,712, « reduction of £27.964. Gross profit was £H3.254, against £79.151. Expenses totalled £7;!,;i!).j, compared with £67,.'55!) a year ago.

NEW AUCKLAND LAUNDRY

FURTHER PROFIT GAIN DIVIDEND MAINTAINED A further improvement in earnings is recorded in the aeeounts of the New Auckland Laundry, Limited, for the year ended January Xet profit for the vear was £4291. against £3496 in 1937' and £2727 in 1936. The directors again recommend a dividend of 6 per rent for the year,' a rate wliieh has been maintained since the company was officially listed on the Auckland Stock Exchange in 1935. The rej)ort of the directors states that the eompany has continued to make satisfactory progress. The larger net profit reflected a substantial increase in sales. _ . After paying the dividend authorised last year and transferring £2OO to income tax account, the balance brought in. together with the current years profit, makes £4729 available. The proposed dividend .requires £3600 and the, directors also propose to write £606 oil' preliminary expenses, leaving £522 to be carried forward. The retiring directors, Messrs. H. fsherwood and R. IT, Montgomery, are available for re-election. Total balance-sheet figures are £13.606 higher at £91.557. Further capital brought in from the issue made in 1936 has raised paid capital by c,3:567 to COO.OOO. Current liabilities have increased by £<sßo. mainly as a result of increased bank accommodation. Fixed assets have risen £13.655 to £79.655. Floating assets total £11.402. and include laundry rights, £4708; preliminary expenses. £1436; debtors. £3970; stock. £1145. nn<[ cash £144. Investments amount to £SOO.

G. J. COLES EXPANDING Ten new stores are to be added to the chain of G. J. Coles and Company, Limited, Victoria. The cost will be about £IIO,OOO. The expansion programme for the current year involves an expenditure of about £175,000, which the company will meet from its own resources. CALL AND DIVIDEND LIST Dividends— Duo Dunlop-Pordriaiw—int., prcf., 5 p.c.j ord., :t l /j p.c. ..To-morrow Felt and Textiles—int., 10 p.c. p.a. .. .. . . To-morrow British Tobacco —ord.. quarterly, 2 p.c. .. . .. To-morrow Bonds Hosiery Mills—(l p.c... To-morrow Hume Pipe—int., a p.c. .. To-morrow General Industries —final, pref 3Va p.c.; ord., 7Mi p.c. .. To-morrow Barnett Glass —int., pref., 4 p.c.; ' ord., a l /, p.c. .; .. To-morrow llawang Tin—3d a share . . To-morrow N.Z. Crown Mines—3d a share To-morrow Bank A'asia—final, 4s (Id a alia™ sterling, less British income tax .. .. . Apl. 1 United Bldg. (Chch.)—int., QVi p.c. .. .. Apl, 1 N.Z. Guarantee Corp.—int., l'/jd a share .. .. ... Apl. 1 Piikemlro—int., 2'/ a p.c. .. Apl. 1 Xemona Gold—ld a share ~ Apl. 5 New Auckland Laundry—(l p.c. p.a. .. .. .. Apl. 8 Dominion Rubber—final, 3 p.c. Apl. 8 Beatli and Co. (Chch.)—lnt., prcf., 2!4 p.c.; ord., 2% p.c. Apl. 8 Milne and Choyce—int., pref., 0 p.c. p.a.; B pref., 7 p.c. p.a.; ord. and deb., 5 p.c. P.a Apl. 0 N'.Z. Drupr—final, 4 l / a p.c.; bonus 5s a share Apl. 12 Northern Rollpr Mills—ny 3 p.c. „ p.a. Apl. 12 South British—inf., BV,d a shnro Apl. 14 Cambridge Clothing—llnal, 3 p.c. Apl. 11 Yarra Falls—int., old, Is; new, 3d a share . . . . . , Apt. 14 Woolworths (Byd.)—final, 0 p.c. Apl. 15 Woolworths (N.Z.) —pref., int., 4Yi p.c Apl. 15 United Provisions—int., pref., 8 p.c. p.a Apl. 30 CallsBroken Hill Ply.—new, 5s a share .. .. To-morrow Burns-i'bilp—new, 5s a share (making Ids paid) . Apl. 1 Austral (N'.Z.) Mining- fifth of 2s (id a share (making 17s Od pairl> . . . Apl. 8 Golden Crown—sixth of 3d » share .. .. •. Apl. 10