DUNLOP ACCOUNTS

Otago Daily Times, Issue 27057, 16 April 1949, Page 3

DUNLOP ACCOUNTS

p A ' WELLINGTON, Apl. 13. The accounts of Dunlop, NZ, Ltd., for year ended December 31, 1948, show the net profit at £10,480, against £133,202 in tlie previous year. Taxation takes £16,000, against £89,800 in the previous year. Preference dividends absorb £19,511, .In the previous year the preference dividends from September 27. 1946, to December 31, 1947, on amounts paid up from lime to time too* £11.762. The sum of £IB4B is written off goodwill, the carry-forward is £4813, against £31,692 brought in. The directors state that the tax charge appears disproportionately high, but it is due to certain exceptional items of expenditure which have been fully written off in accounts, but which, for taxation purposes are not wholly allowable. During 1948 the volume of business, largely in imported lines, was well maintained within the limits of the import licences granted, and the development and distribution arrangements in readiness for the marketing of products of the factory at Uppci Ilutt was continued. The profits earned m 1948 show a decrease on 1947 mainly because of increased hifport costs in the first half of the year, coupled with the reduction in tyre prices, and because of the effect which the alteration in the exchange rate oi the New Zealand pound had dn inventories, which had been valued at lower of cost or market value at December 31, 1948. The directors are of the opinion that until the main object of the establishment of the company is achieved and the factory at Upepr Hutt is in full operation, the balance of profit after paying the pieference dividend should be carried forward for appropriation In succeeding years according to the position of the company at that time.