COMPANY NEWS

Southland Times, Issue 23675, 25 November 1938, Page 3

COMPANY NEWS

OAMARU WOOLLEN MILLS LOSS ON YEAR’S WORKING A loss of £7169 is shown in the accounts of the Oamaru Worsted and Woollen Mills Ltd. for the year ended October 31. This result compares with a net profit of £8571 last year and £8309 in 1936. in these two years a dividend of 6 per cent, was paid. The directors state that because of the inciease in wages and working costs the mill has been at a disadvantage in competing against imported goods, and the plant has only been working at partial capacity. This has reduced turnover below a profitable basis. The trading result was further adversely affected by the drop in wool prices, which necessitated a corresponding writing down of stocks. The balancing total is £10,847 lower at £117,072. The bank is owed £5480 more at £18,173, but creditors and taxes are down by £6llO to £6865. Premises and plant stand at £63,084, a rise of £1303. Stock is lower by £6824 at £45,918, and debtors have fallen £5326 to £BO7O. HENRY JONES CO-OP. The volume of trade done by the associated companies of Henry Jones Co-operative Ltd. in their last financial year was the largest in their history, but profit of the parent company for the 12 months ended October 31 was £7513 lower at £192,597. After providing for expenses, income earned within the Commonwealth was £137,747, from which an interim dividend of 6d a share (£35,754) was paid on June 1. Income earned outside Australia was £54,850. A final dividend of 1/6 a share'is to be paid equally from income derived inside and outside Australia, and will absorb £143,017. It is proposed to transfer £49,580 to general reserve. The latest net profit represents an earning rate of 13.4 per cent, on the paid capital of £1,430,173, and the year’s dividend distributions make an unchanged total of 10 per cent, for the year. Results for three years are compared in the following table:—

The parent company is purely a holding company, being the central figure in an important group of fruit preserving and jam manufacturing concerns operating throughout Australia and New Zealand. It also has substantial interests in England and South Africa, in addition to being associated with activities outside the fruit processing industry. The directors state that in the accounts of the associated companies full provision has been made for depreciation of plant and machinery and other contingencies. The new factory in Johannesburg, South 'Africa, is manufacturing in accordance with the programme laid down, and it is considered likely to contribute to the company s strength in that country. Seven factories in New Zealand and South Africa are now being operated successfully. Since inception in 1910 net income has amounted to nearly £3,369,000, and dividends paid to nearly £2,753,000. Balance-sheet items are compared

E.S. AND A. BANK The profit of the English, Scottish and Australian Bank Limited for the year ended Jurie 30, was £280,593, against £276,127 in the preceding year, according to a preliminary statement issued by the Melbourne office. After transferring £lO,OOO to officers’ provident fund, there is left from the profit a sum of £270,593, equivalent to just on 9 per cent, on the paid capital of £3,000,000. A transfer of £15,000 to reserve fund has already been made, and an interim dividend of 31 per cent., less British income tax of 4/3 in the pound, took £82,688. From the balance of £488,884 available, it is proposed to transfer £50.000 to contingencies reserve; to use £35,000 in reduction of bank premises account: and to pay a further dividend of 3t per cent., less British income tax at 3/7 in the pound, requiring £86,188. The rate of dividend for the year is unchanged at 7 per cent., taxable. Deducting tax and allowing for exchange, the return to New Zealand shareholders is a net 7 per cent. The 5 per cent, distribution for 1935-36 was tax free. Results for the past three years com-

Gross earnings were £1,268,612, against £1,181,480 last year and £1,102,713 in 1935-36. Expenses, including taxation, were £988,019, against £905,353 last year, when taxation required £132,810. The separate amount has not been indicated in the preliminary statement. SWAN "BREWERY For the six months ended September 20 the Swan Brewery Company Ltd., of Western Australia, reports a profit of £54,210, after reserving £15,552 for taxation. This compares with £68,025 in the previous half-year, and with £53,950 in the corresponding period last year. Profit for the 12 months ended September 30 amounts to £122,240, compared with £118,940 in 1936-37. A dividend on the 6 per cent, cumulative preference shares requires £l5OO and ordinary dividend for the year 1/6 a share, requiring £51,047. With the payment of 6d, plus a bonus of 3d a share for the previous half-year, the distribution for the full year is 1/3 (unchanged) on the 5/- ordinary shares, equivalent to 25 per cent. Yearly results since 1934-35 afford the following comparison:— YEAR ENDED SEPTEMBER 30

YEAR ENDED OCTOBER 31 1936 1937 1938 £ £ £ Australian income 143,255 146,940 139,320 Ex. Aust, income 53,850 54,850 54,850 Expenses 1,655 1,680 1,573 Profit 195,450 200,110 192,597 P.c. to capital 13.7 14 13.'4 Dividend 143,017 143,020 143,020 Per cent. 10 10 10

below: — ' 1937 £ 1938 £ Assets— Investments at valuation 2,269,490 2,269,490 Liabilities — Capital 1,430,170 1,430,170 Share premium 59,040 59,040 General reserve 509,360 566,460 Profit and loss 164,360 156,840 Creditors 106,560 56,980

pare as follows:— 1936 1937 1938 £ £ £ Brought forward 299,325 306,786 305,973 Net profit 257,461 276,127 280,593 556,786 582,913 586,571 To reserve 15,000 15,000 15,000 Contingency ac. 50,000 50,000 50,000 Provident fund 10,000 10,000 10,000 Bank premises 25,000 30,000 35,000 Dividend p.c. (stg.) *5 7 7 Amount 150,000 171,935 168,874 Carried forward 306,786 305,978 307,697 *Fre of tax.

1935 1936 1937 < ' 1938 INCOME— £ £ £ £ Trading 221,200 272,420 296,490 176,590 Rents, etc. 59,400 65,420 72,890 82,590 EXPENSES — ♦Overhead 93,200 100,440 115,260 109,100 Income tax 30,500 36,422 42,820 37,330 Depreciation 56,200 82,050 92,360 90,520 PROFITS 100,720 118,930 118,940 122,240 DIVIDENDS 88,090 88,090 114,860 130,617 Pref., p c. 6 6 6 6 Ord., p.c. 20 20 25 25 •Including selling expenses and repairs.