PERPETUAL FORESTS

New Zealand Herald, Volume LXXV, Issue 23053, 2 June 1938, Page 9

PERPETUAL FORESTS

LOWER NET PROFIT SPECIAL DIVIDEND PAYMENT !0i PER CENT FOR YEAR A net profit of £20,812, a decrease of £5218 on the previous year's earnings of £20,030, is shown in the accounts of New Zealand Perpetual Forests, Limited, lor the year ended March 31. A final dividend of 4 per cent and a special dividend of 2.} petcent are recommended, making, with the interim payment of 4 per cent, a total distribution of 10} per cent for the year. This compares with 8 per cent for the previous year. The year's dividend requirements absorb £20,711 and £31,879 remains to be carried forward, against £31,808 brought in. Gross income at £137,687 is £92,315 lower and expenses have declined by £87,118 to £116,875. Transitional Stage The directors report that the company's affairs arc at a transitional stage, following the incorporation of the Bondholders' Company. The bal-ance-sheet has been prepared on the j same basis as previously, except that j provision has had to be mado for movements during the six niony&s in respect of assets which will be taken over by New Zealand Forest Products, j Limited, should compounding be con-j stimulated. This has been effected by ; the creation of a suspense account of j £67,515. Taxation has made very heavy calls < on the company and on individual ■ shareholders during the past year, and up to May 31 the company had paid j £19,329 on assessments received during \ the financial year. Individual share- ! holders in New Zealand have been! called upon to pay on an increased | basis of assessment for the year ended 1 March, 1933, and an unexpected tax in respect of unemployment for the' same year. This tax in respect of bonus units distributed in 1933 has fallen heavily on some shareholders. The retiring director, Mr. H. Landon ; Smith, is eligible for re-election. Results Compared Results for the past three years compare as follows: —

Subsidiary accounts include shares in subsidiary companies which are unchanged at £7997, and loans to subsidiaries, £26,026. Total assets, at £1,522,743, are £IOO2 higher. A substantial reduction of £47,950 has been made in the reserve for planting. Other reserves include forfeited shares reserve, £135, and reserve account, £6640. Provision for taxation is included in the entry creditors. AUSTRALIAN ALLOY STEEL reorganisation completed Investigations carried out into the finances of Australian Alloy Steel, Limited, Sydney, by the new board, disclose that lor the period from July 1 to Decent her 31 last a loss of £ 10, L 52 Mas incurred alter writing oft £1903 for depreciation, providing £-000 for unsaleable stock, and £550 lor bad debts. The directors in a circular to share- j holders state that a loss was also revealed regarding the subsidiary concerns associated with the company. Complete reorganisation of the company's affairs has. been made, and unnecessary expenditure drastically cut out. Confidence among financial and commercial institutions is now being rapidlv regained. . * .•"It'is obvious from the various rearmament schemes under consideration that there must be a very greatly increased demand for steel fabrications, the statement continues. "There is now reason to state that the future holds every prospect of the company's rehabilitation." Application has been made to the Sydney Stock Exchange for the listing of the company's shares. NEW BLAST FURNACE With a capacity of .1000 tons of pig iron a day, the new blast furnace of Australian Iron and Steel, Limited, the largest furnace in Australia, has been "blown in" at the company's Port Kcnibla jvorks. This furnace will give a much-needed increase in the pig iron supplv and will be of benefit not only to the Port Kcnibla works but also the Broken Hill Proprietary Company's works at Newcastle. At the last meeting of Australian Iron and Steel, Limited, the chairman, 31 r. H. G. Darling, -pointed out that Australia had been practically denuded of scrap, and most of this material now available was of poor quality and expensive. Ihe additional supply of pig iron would lessen their requirements in this direction. - WHOLESALE EGG PRICES The Auckland Egg Marketing Committee announces that wholesale egg prices are unchanged, as follows: Hen: First grade, 2s BJd n dozen; B grade, 2s ojd; C grade, Is 9Jd. Duck: First grade, 2s G|d a dozen; B grade, 2s 4Jd: C grade, 2s OJd. Country storekeepers' minimum buying prices for first grade eggs are: —Hen, 2s ljd a dozen; duck, 2s. COMPANY APPOINTMENT The chairman of the Bondholders' Incorporation Commission, New Zealand, .Mr. J. S. Barton, was elected a director of the Wosthaven Harbour Land, Coal and Timber Company, Limited, at a meeting of the company held in Melbourne. Tlio company is a land utilisation concern, with forest areas in Nelson Province, New Zealand, and incorporated in Victoria. ANTWERP FUTURES LONDON, May 31 The Antwerp market for wool futures is quiet. Quotations for 64.'s dry combed tops are as follows, compared with previous rates: —• A pi. '2O Ma.v 3 May -1 May 31 Per lb. Per lb. Per lb. Per lb. (I (1 d (1 May .. 23% -4 23% July .. 24% '-'4'/ 4 23%22 7 / a October .. 24% 24% 23% 28%

1930 Brt. forward . £ 1 5.2S0 Net profit . . 22,104 1037 £21,581 20,030 15)38 £31,808 20,812 £37,381 Dividend, p.c. 8 Amount . . 15,803 £47,011 8 15,803 £ 52,020 10% 20,71L Car. forward . £21,581 £31,808 £31,870 Balance-sheet movements over the past year are:— LIABILITIES £ Paid capital .. . 107,530 Creditors, etc. . .. 07,034 Reserve for planting .. 1,100,104 Other reserves . . . 6,775 P. and L. Approp. A/c. 41,719 N.Z. Forest Prod, suspense account .. G7.515 £ Same -23,573 -47,050 Same +5,000 +07,515 ASSETS £ Land, plant, .etc .. 30,400 Maintenance invest. .. 500,1 <8 Inventories ... ■ Reserve tnnd invest. . 128,112 Subsidiaries' accounts .. 34 0 >3 Debtors w Forestry investors . . Invest., cash, etc. .. 11 £ -17 Same -5,101 +1,300 -1,050 + 80,703 -70,288 -4,010