A.C. INDUSTRIES

New Zealand Herald, Volume LXXVI, Issue 23340, 8 May 1939, Page 7

A.C. INDUSTRIES

BALANCE-SHEET CHANGES STRENGTH OF RESERVE FUNDS NEW SYDNEY HEADQUARTERS The capital reorganisation of Australian Consolidated Industries, Limited, formerly Australian Glass Manufacturers, Limited, which was carried into effect during the year, is reflected in the balance-sheet for tho year ended March 31. The sale of the company's assets took place as at December 31, 1938. so that the company's revenue for the 12 months to March 31 consists of profits earned from manufacturing and trading operations up to the date of sale, plus a full year's revenue in the form of dividends received from subsidiaries and other investments, rents, interest, etc. The recently-formed subsidiaries will not prepare accounts until March 31, 1940. but all the older subsidiaries disclosed profits on their operations. , Such profits are included in the accounts under review only to the extent of the dividends received during the year ended March 31, 1939. Balance-sheet movements are as follows: — '

LIABILITIES £ £ Capital .. .. 3,004.202 +2.558.814 'Reserves .. • • 2.522.005 +1.822.f)0."> Creditors . . 240,380 -368,020 Due to subsids. .. 498,000 +498.000 ASSETS Properties .. 08.286 —185.503 Furnituro .. 10.524 +10,524 Plant .. .. Stock .. .. Debtors .. .. 23.076 -179.458 Loans and invests. Cash . . • . 10.077 -20.722 Shares in subsids. 7.043.017 +7.013.017 Advances to subsids. 99,020 * +99.920 The chief changes are that plant and stocks have disappeared as the concern is now a holding company. Shares in subsidiaries is a now item. Reserves have increased sharply, and the present figure includes £162,905, being capital assets realisation reserve after allotment of the fully paid shares. The sharp rise is due to surpluses arising from sales of rental, estate, plant, machinery, etc., together with internal reserves released and the appropriation of £50.000 from the year's profits.

The directors state that land was recently purchased in William Street, Sydney, and a contract let for erection of a building to serve ns New South Wales headquarters. The building should be completed late this year. CABLE AND WIRELESS PROFITS DROP 20 PER CENT MORE EMPIRE BUSINESS LONDON, May 0 Tho accounts of Cable and Wireless, Limited, show a net profit of £1,001,000, a reduction of 20 per cent. Mr. W. Wilsliaw, chairman of directors, expresses confidence of the success of the Empire flat rate for interEinpire traffic, which is showing a marked progressive increase, contrasting with tho declino of foreign business. Net profit in the previous year amounted to £1,256,019. The reduction in telegraph rates between various countries was introduced in April, 1938. MORE SUGAR SUPPLIES VIEWS ON COUNCILS PLAN LONDON, May 5 It i 9 understood that the International Sugar Council has received several favourable*" replies to its proposal that the sugar exporting countries should release additional supplies, but it is expected that the United States and Cuba will oppose such a move. The attitude of tho Netherlands and Peru authorities is regarded as doubtful.