TIMBER EARNINGS

New Zealand Herald, Volume LXXVI, Issue 23418, 7 August 1939, Page 5

TIMBER EARNINGS

TAUPO TOTARA YEAR

SMALL PROFIT INCREASE

ORDINARY DIVIDEND RESTORED

Tho accounts of the Taupo Totara Timber Company, Limited, of Putaruru, for the year ended April 30 show a net profit of £8134, after providing £5095 for income and social security tax and allowing £13,326 for depreciation of plant and bush cut out. This compares with £8285 a year ago, when earnings were adversely affected by mishaps and trade difficulties. In addition to the fixed preference dividend the directors propose to restore the dividend on ordinary shares omitted in the previous year and recommend a distribution of 2 per cent. This will absorb £1751, which," with the year's preference payment of £6(533, will.leave £l-131 to be carried forward, against £4381 brought in. The report states that the demand for timber during the past year was good for heart, although .it still remained very unbalanced, and did not justify opening No. 2 mill. The higher operating costs now faced had made the overhaul of machinery, which was done chiefly during holiday periods, very expensive.

During the year Mr. L. It. Pulham, an experienced sawmiller, had been invited to join tho board, an appointment shareholders will be asked to confirm. The retiring directors, Messrs. R. S. Abraham and R. A. Wilson, are available for rc-elcetioii at tho annual meeting, which is held in Wellington. Results for the past three years compare as follows: —? 11 KIT ions 1030 Brought forward £7.312 £2,729 £1,381 Net profit . . o.. r >f>2 B,'JSS 8,131 .£12,801 £11,014 £12,815 Dividends—l'ref., o 3-5 p.C. 0,033 0,033 0,033 Ord 4 2 Amount .. 3,502 ] f 1,751 Carried forward . £2,720 £4,391 £4,431 Paid capital of the company is unchanged at £206,010, of which there is £87,553 in ordinary shares of 10s each fully paid. Outside liabilities are £61.31, against £3511 a year ago* The balancing total is £291,197, an increase of £2979. Fixed. assets at £201,581 compare with £213,570 in 1938 ; while more or loss liquid assets, including stocks, £31,185, which are £2957 lower, are £14.965 greater at £89,613. Debtors are higher by £6314 at £22,634 and there is an increase of £10,898 in cash, which stands at £16,214. A consolidated balance-sheet of the company and its subsidiaries shows assets totalling £311,383, against £308,405 a year ago. WAIRAKEI HOTEL , AN INCREASE IN PROFIT DIVIDEND OF 1\ PER CENT A net profit of £2854 is shown in the accounts of Wairakei, Limited, for the year ended Juno 30. This compares with £2159 a year ago. The directors recommend an unchanged dividend of per cent for the year. Tin's requires £lB7-3 and £SOO has been transferred to reserve, leaving £lslO to bo carried forward, against £lO6l brought in. . Results for the past three years compare as follows: — 1 1037 1038 • 1030 Brought forward . £OO2 £1.0J7 £l,OOl Net profit . .. 2,4.2 2,1 o 9 2,8u>4 £3,134® £3,830 £3,015 To resorvo ; . WK) 500 Dividend, 7Y, p.s. «3y15. 1,8.5 ,3.8.5 I Carriod forward >. £1,077 £l,OOl £1,540 -*On smaller capital. Capital remains at £25,000 in 5s shares. A reduction of £2573 has been effected iii bank accommodation, which now stands at £lO7l, while creditors, which include provision for taxes, are on lv £212 higher at £3850. General reserve is increased to £3OOO by the latest appropriation. Only minor changes, involving the usual provisions, have occurred in assets, the total of which is £36,342, against £37,431 a year ago.