MESSRS JOSEPH NATHAN AND CO.

Otago Daily Times, Issue 18875, 30 May 1923, Page 5

MESSRS JOSEPH NATHAN AND CO.

DECLINE IN TRADING PROFIT. ANNUAL REPORT. (Fbom Odb Own Correspt’ndb'n f.l LONDON, April 18. From the recent announcement of the directors of Messrs Joseph Nathan and Co., the proprietors of Glaxo, that they had decided not to pay an interim dividend on account of the current year on tho preferred participating ordinary and ordinary shares, it was evident that the earnings of the undertaking had suffered a setback, and this is confirmed by the showing made in the report now issued. wThe trading profit has declined from £88,400 to £13,700, and revenue account has not this time been supplemented by any profit from land sales, which on the previous occasion produced £18,600. There is a saving of £BSOO in income tax, but this is practically offset by an increase of £BOOO in interest charges. The net profit at £20,200 is £37,200 down. This, however, is before providing for adverse exchange balances and exceptional losses on the realisation of stocks and liquidation of foreign assets. These total no less than £182,800, and are met by transferring from accumulated contingent reserves £183,400 which leaves £6OO to be added to net profit. With the sum brought in there is an available balance of £106,800. Tho greater part of this is absorbed by the preference and preferred ordinary dividends, and by two interim distributions of 4 per cent, on the ordinary capital. It is not intended to make any further payment to tho ordinary proprietors, whoso return will consequently remain at 8 per cent, for the past year, as compared with 10 per cent, for the preceding period. The balance carried forward is £48,300, or little more than half tho amount brought in.

Stocks are down from £595,800 to £524,600. Accommodation to farmers, open accounts, etc., exhibit a contraction from £541,100 to £137,409, while trade and other liabilities have declined from £542,700 to £276,600. Bank overdrafts have been reduced from £355,200 to £320,200, but a mortgage of £BO,OOO has been raised bn the Osnaburgh street premises. The expenses of the new capital issue in May have been added to the previous suspense item in the balance sheet increasing it from £37,700 to £57,700. Part of the outlay on building up export business—£ll,9oo— also been placed to suspense account, making the total under this head £24,900. The report gives no intimation of the present state of trade, but the chairman may be relied on to enlarge on this at the coming meeting.