INCREASE IN PROFIT

Southland Times, Issue 23287, 25 August 1937, Page 3

INCREASE IN PROFIT

WRIGHT, STEPHENSON AND CO., LTD. ORDINARY DIVIDEND RAISED The directors of Wright, Stephenson and Co., Ltd., in issuing the balancesheet for the year ended June 30, 1936, again review the company s accounts in a special memorandum to shareholders. . , , , Earnings for the year, after deducting general expenses, depreciation, provision for land and income tax and bad and doubtful debts, amount to £81,156 9/8. After paying debenture interest, directors’ fees and contributions to employees’ pension funds, the net P r °h4 for the year is shown at £42,814 11/10 The amount brought forward was £37,144 4/2, making a credit balance in the appropriation account of £79,958 16/An interim dividend at the fixed rate on preference shares and 2 per cent, on ordinary’ shares was paid for the six months ended December 31. It is now proposed to make the fixed payment on preference shares for the half-year ended June 30 and pay a further dividend of 3 per cent, on ordinary shares, thus making the ordinary dividend 5 per cent, for the year. This compares with an ordinary dividend of 41 per cent, per annum for the fifteen months ended June 30, 1936. After paying these, dividends there will be a balance to carry forward of £52,454 14/-, which is £15,310 9/10 more than the balance brought forward a year ago. PAID-UP CAPITAL / The date of the company’s/balance was changed last year from/March 31 to June 30; thus the previous accounts covered a period of 15 mofiths. The balance-sheet shows paid-up capital unchanged at £550,082 in 249,840 preference and 300,242 Ordinary shares, all of 20/- each. General reserve is unchanged at £28,132 1.7/5. While the total of/debentures issued at £680,287 shows an/increase of £33,908, there has been a/reduction of £50,872 on the prior liefi issue and a reduction in all the higher interest-rate second liens. The increase has been entirely in the 4 per cent, terminable second liens which stand at £105,514 more than last year. /’ Fixed deposits at £88,086 9/6 show a reduction of £3783. Subsidiary companies’/ balances show an increase of £71,164. Clients’ current accounts in credit total £455,811 12/4, an increase of '£74,945, and trade creditors at £332,367 4/4 are £121,995 more than last year. The amount at credit of staff pensions fund shows a reduction of i £45,344, due to the administrators of the fund increasing their investment in the company’s debentures. On the assets side, freehold land has been increased by £9187 by additional purchases. Premises have increased by £25,378, but as depreciation has increased by £14,319, the net addition to the book value is only > £11,059. Machinery, plant and furniture has again increased, but as depreciation has been increased to a greater extent, the net book value has been reduced by £2736. Motor-vehicles show an increase of £2205. INCREASE IN INVESTMENTS Investments in subsidiary and associated companies are shown at £373,660, an increase of £45,199. Advances against export produce are down £17,648. Advance accounts are £29,359 lower and ordinary trade debtors £14,848 lower than a year ago. Stocks of merchandise, etc., show an increase of £45,199. Bills receivable are up £8453. ' Investment shares, totalling £47,395, are a new item in the assets. It is explained that these are shares in leading financial, insurance and industrial concerns, and are readily saleable. They have been acquired purely as an investment of surplus funds, and have no other business attachments. Cash at bankers and on hand at £140,988 is £57,602 more than last year. Cash on deposit at short call amounts to £125,000, which is £58,000 more than last year. Most, if not all, of the above two cash items, will be wanted to provide the company’s farmer customers’ requirements before next season’s returns come in. The company’s results for the last three years are shown in the following comparative statement:—

NEW ZEALAND DRUG CO. DUNEDIN, August 24. At a meeting of the board of directors of Kempthorne Prosser and Company’s New Zealand Drug Company today, an interim dividend of 3’> per cent, for the half-year ended July 31 was declared.

1935 *1936 1937 £ £ £ Net profit 40,321 40,220 42,815 Brought fwd. 13,609 29,428 37,144 . — — — ■■■ —• . -■ 53,930 69,648 79,959 Dividends— Pref., 5 p.c. p.a. 12,492 15,615 12,492 Ord., p.c. p.a. 4 41 5 Ord., amount 12,010 16,889 15,012 - — 1 .1Carried fwd. 29,428 37,144 52,455 •Fifteen months’ period.